De Beers Cuts 2026 Production Forecast Amid Sluggish Demand, Anglo American Considers Third Writedown

Production Declines Across Key Operations

De Beers Group reported a significant 35 percent drop in diamond production during the fourth quarter, largely due to extensive maintenance at its key mining sites and ongoing sluggish demand for rough diamonds. The company recovered 3.8 million carats in the fourth quarter ending December 31, a considerable decrease from the 5.8 million carats recovered in the same period the previous year.

Botswana, De Beers’ most significant operational region, saw a drastic 56 percent reduction in output. This decline was primarily attributed to plant maintenance at two of the country’s three active diamond mines. Notably, the Jwaneng mine, recognized as the world’s richest diamond mine, was offline for the entire quarter, while the Orapa mine experienced a shutdown throughout October. De Beers has stated that its mines in Botswana will focus on cost management by balancing optimal plant throughput with necessary maintenance downtime.

In South Africa, production at De Beers’ Venetia mine decreased by 10 percent, also owing to planned plant maintenance. Namibia experienced a 21 percent production decline as maintenance was conducted on two diamond-mining vessels. The Benguela Gem recovery vessel underwent an extended period in port for the installation of a new subsea crawler. Earlier in 2025, De Beers had already decommissioned two vessels in response to prevailing market conditions.

The only region showing an increase in production was Canada, where De Beers operates the Gahcho Kué mine. Production there more than doubled, reaching 949,000 carats as operations accessed new ore from the latest mine cut.

Lowered Production Guidance and Financial Concerns

In light of the challenging market conditions, De Beers has revised its production forecast for the full year. The company now anticipates producing between 21 million and 26 million carats of diamonds in 2026, a reduction from its earlier projection of 26 to 29 million carats.

These production figures were released as part of Anglo American’s fourth-quarter production report. Anglo American indicated that De Beers is expected to incur losses again in 2025. Consequently, the parent company is contemplating another writedown on De Beers’ value when it announces its full-year financial results on February 20. This would mark the third such impairment charge for the De Beers business in three years.

Anglo American previously recorded a $1.6 billion writedown on De Beers in 2024 and a further $2.9 billion impairment charge in February 2025. The company is also actively pursuing the sale of De Beers, a process initiated as part of a broader company-wide restructuring confirmed in May 2024. De Beers Group CEO Al Cook expressed optimism in May 2025, suggesting that the separation could be finalized in the first half of 2026.