The world’s largest natural diamond producer is heading toward a sale: cutting prices, reducing output, and closing stores

Reporter Luo Wenli On August 17, De Beers commenced its seventh rough diamond sight cycle for 2026. This marks the second round of rough diamond sales since its new supply contract took effect on July 1—and serves as a key window for market observers to assess whether De Beers will continue shrinking its sight-holder network and adjusting rough diamond pricing. Sight-holders constitute De Beers’ core customers for rough diamond sales. According to De Beers’ official website, roughly 90% of its rough diamonds—by sales value—are sold through this channel. Effective July 1, 2026, De Beers implemented a revised supply contract, reducing the number of sight-holders from 69 to approximately 45 and lowering prices across multiple rough diamond categories. Its rough diamond output has declined by about 37% compared to four years ago. Bloomberg reported that, amid this backdrop, De Beers’ reduction in the sight-holder list aims to concentrate supply toward buyers with stronger purchasing power. By production value, De Beers is the world’s largest natural diamond producer, with operations spanning natural diamond exploration and mining, rough diamond trading, jewelry retail, and industrial synthetic diamonds. Its portfolio includes jewelry brands such as De Beers London and Forevermark. Historically, rough diamond sales have formed its primary revenue stream. According to the latest financial report released by its parent company, Anglo American plc, De Beers’ revenue for the first half of 2026 fell 18.9% year-on-year to USD 1.583 billion—the lowest level since 2021. Of this, rough diamond sales revenue totaled USD 1.3 billion, accounting for approximately 82%. In the first half of 2026, De Beers recorded a USD 113 million underlying EBITDA loss (i.e., before interest, taxes, depreciation, and amortization), narrowing from USD 189 million in the same period last year. Anglo American attributed part of this improvement to reduced operating costs. Under mounting financial pressure, De Beers has also been placed on the negotiating table for an equity sale by its parent company. One of its shareholders—the Government of Botswana—disclosed in July 2026 that Anglo American had identified a consortium led by Gareth Penny, De Beers’ former CEO, as the preferred bidder for its 85% stake. Anglo American has not confirmed the buyer’s identity, stating only that the sale process remains ongoing. Declining demand and falling prices for rough diamonds In the first half of 2026, De Beers saw an increase in rough diamond volume sold—but rough diamond sales revenue has declined for four consecutive years. Anglo American’s semi-annual report shows De Beers’ H1 2026 revenue at USD 1.583 billion, down 18.9% year-on-year. Specifically, rough diamond volume rose from 11 million carats to 12.4 million carats—a 13% increase—while rough diamond sales revenue dropped from USD 1.7 billion to USD 1.3 billion, a decline of roughly 24%. Anglo American explained in its earnings release that De Beers’ overall revenue decline stemmed primarily from lower average rough diamond prices, which reduced sales revenue. The report states that De Beers’ average rough diamond price fell from USD 155 per carat to USD 105 per carat during the reporting period—a 32% drop. Additionally, increased sales share of smaller, lower-quality stones further depressed the average selling price. The new sight-holder supply contract was formulated and enacted precisely amid this downward price trend. In 2024, De Beers first proposed revising its 2026 sight-holder contract under its “Origins” strategy—aimed at streamlining operations and revitalizing demand for natural diamonds.

After a 50% market-cap wipeout, shareholders queue up to cash out; a British giant panics: China must step in and take over

A recent report by the UK-based Financial Times sent ripples through the global jewelry industry—and soon came even more concrete news: On July 13, 2026, De Beers announced a two-year suspension of production at its Venetia mine in South Africa. This veteran operation—running for over three decades—accounts for 40% of South Africa’s annual diamond output and over 10% of De Beers Group’s global production, earning it the title of South Africa’s ‘crown jewel.’ With the crown jewel dimmed, other cracks in the empire are widening. As China’s diamond industry continues gaining momentum, the century-old De Beers business model is beginning to fray—evidenced by USD 14.6 billion in unsold inventory, a near-50% valuation haircut, frequent acquisition offers from shareholders, and clear signs of shareholder intent to cash out. Recall De Beers’ golden era: Since 1902, it controlled over 90% of the world’s diamond mines, effectively holding sway over global diamond pricing. Even when the Soviet Union discovered massive diamond deposits in Siberia, it proactively approached De Beers to negotiate: “We’ll supply only as much as you can absorb—and never sell directly into the open market.” Yet within a century, the former titan finds itself at this juncture. Who disrupted its dominance? In 2016, De Beers’ global market share slipped to 35%; in 2024, Anglo American signaled plans to divest the company, then valued at USD 8 billion; by 2025, its book value had shrunk to just USD 4 billion—alongside USD 2 billion in unsellable inventory—and its full-year net loss ballooned to USD 511 million. Industry insiders widely agree that China stands as an unavoidable catalyst behind this cascade of setbacks. When China polished its first diamond in 1963, few imagined that this ‘small stone’ would one day reshape the entire industry. Decades of quiet, persistent technological advancement culminated in 2019, when the Chinese Academy of Sciences broke through a critical bottleneck—propelling domestic diamond production onto a mass-manufacturing track. That same year, the U.S. Federal Trade Commission (FTC) revised its official diamond definition, removing the distinction between mined diamonds and lab-grown diamonds produced in China—effectively opening the door wide for Chinese technology. Zhecheng County in Henan Province—a small eastern Henan town once listed among China’s national poverty-stricken counties—rode this wave. Today, it produces 12 million carats of diamonds annually—roughly one out of every two diamonds globally. Not only has Zhecheng lifted itself out of poverty, but it has also earned the moniker “Diamond Capital of China,” spawning a cluster of homegrown diamond brands. Take Zheguang Diamond, recently surging in popularity on major e-commerce platforms including Jingdong (JD.com) and Taobao: Its white diamonds achieve VVS clarity, D color grade, and Triple Excellent (3EX) cut—top-tier ratings under IGI’s 4C grading system. Its products collectively hold over 20,000 authoritative IGI certifications. Yet its pricing delivers a powerful shock: A one-carat white diamond set in 18K gold retails for just RMB 10,000 (~USD 1,400); similarly graded fancy-colored diamonds—intense pink, yellow, or blue—cost under RMB 30,000 (~USD 4,200) per carat.

Richemont in talks to join bid for diamond miner De Beers, Bloomberg reports

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Swiss luxury group Richemont is reportedly in talks to join a consortium bidding for diamond miner De Beers to secure supply chain control as the industry recovers. US retailer Signet may also participate in the potential acquisition.

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Richemont in talks to join bid for diamond miner De Beers, Bloomberg reports

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