De Beers suspends operations at South Africa's Venetia mine

De Beers, the world's leading diamond company, announced on Monday, July 13, 2026, that it will suspend operations at its flagship Venetia mine in South Africa for two years. The move is a major cost-cutting step as the natural diamond industry grapples with a prolonged slump in prices, weakened demand, and intense competition from laboratory-grown alternatives.

The Venetia mine, located in Limpopo province near the borders with Botswana and Zimbabwe, is South Africa's largest diamond producer. It accounts for more than 40 percent of the country's annual diamond output and contributes approximately 10 percent of De Beers' global production. The company stated the pause is intended to reduce costs and rephase capital expenditure on an ongoing underground expansion project. The decision will not affect De Beers' overall output targets, as the company plans to source more stones from other locations.

The announcement underscores a deep crisis within the $80 billion diamond industry. Prices for rough diamonds have fallen sharply due to a combination of factors, including a post-pandemic pullback in luxury spending, particularly in China, and disruptions to trade from geopolitical...