Anglo American Faces $2.9 Billion De Beers Writedown as Diamond Industry Struggles

Declining demand for natural diamonds and the rise of lab-grown alternatives drive Anglo American to reconsider De Beers' future.

Anglo American reported a $3.1 billion net loss for 2024, driven by a $2.9 billion writedown of its diamond subsidiary, De Beers.
De Beers' valuation has dropped to $4 billion, down from $8.5 billion in 2023, partly due to a $2 billion inventory of unsold diamonds.
Falling demand in China and competition from lab-grown diamonds have significantly impacted De Beers' sales and market position.
Anglo American is exploring options to spin off or sell De Beers, but formal progress is unlikely before the second half of 2025.
The Botswana government, which owns a 15% stake in De Beers, is expected to play a role in any potential sale or restructuring.