De Beers has intensified efforts to reduce a diamond stockpile that ballooned to an estimated $2 billion this year, offering substantial discounts during its third-quarter sales to shift excess inventory into a subdued market. The aggressive pricing strategy generated $700 million in consolidated revenue from 5.7 million carats across two sights, a sharp contrast to the $213 million earned from a single 2.1 million-carat sight in the same period last year.
According to Anglo American’s latest production update, the markdowns formed part of deliberate stock rebalancing, with specific assortments deliberately sold at reduced margins to clear warehouses ahead of the planned separation of De Beers. As reported by Mining Weekly, the move simplifies the divestment process for Anglo American, which values its 85% stake in the iconic diamond producer at $5 billion—double the $2.5 billion consensus among potential buyers.
The timing aligns with a complex sale involving southern African governments, notably Botswana’s 15% shareholding that grants it matching rights on any offer. Gaborone has signalled intent to secure controlling interest, while Angola has also tabled a bid for the majority stake. Industry sources suggest resolution could hinge on balancing commercial valuations with strategic national interests in a business that remains a cornerstone of regional economies.
Average realised prices fell 3% to $155 per carat, outperforming a 14% decline in the broader rough diamond price index, reflecting De Beers’ ability to protect value on premium stones despite competitive pressures. Temporary relief came from United States exemptions on natural diamond tariffs for countries with existing trade agreements, including the European Union, though uncertainty persists over extensions to other key suppliers like India, the global cutting hub.
Consumer demand for natural diamond jewellery held steady in the United States—the world’s largest market—and remained broadly resilient globally, providing a glimmer of hope amid laboratory-grown alternatives gaining traction at lower price points. Production surged 38% to 7.7 million carats, propelled by strong output from Botswana’s flagship Jwaneng mine before scheduled maintenance in the final quarter.
Anglo American chief executive Duncan Wanblad confirmed steady progress on a dual-track separation and structured sale process, part of a wider portfolio reshape that prioritises copper and iron ore. The group recently pocketed $2.5 billion from exiting its remaining platinum holdings and prepares to relaunch an auction for Australian metallurgical coal assets, demonstrating disciplined capital allocation amid commodity volatility.
For De Beers, clearing inventory not only burnishes balance sheet optics but positions the company to capitalise on any demand recovery without the overhang of unsold goods. Analysts anticipate that a successful divestment could unlock value for Anglo shareholders while preserving the producer’s legacy under new ownership attuned to African developmental imperatives.
With synthetic diamonds now commanding up to 80% of certain retail segments and traditional players consolidating, the third-quarter fire sale underscores a pivotal transition for an industry synonymous with enduring value. As negotiations advance, the outcome will shape not merely corporate fortunes but the economic trajectory of diamond-dependent nations across the southern African region.