THE crisis in the diamond market appears unrelenting, with Anglo American disclosing in a production report on Thursday that average prices for uncut gems plummeted 32% during the first six months of 2026.
Including discounted sales after De Beers started to reduce inventories with a book value of $2bn, the consolidated average realised price fell to $105 per carat. Anglo said there was a higher proportion of lower-value goods in its sales mix during the period.
But the average rough diamond price declined 16%, which Anglo said was influenced by uncertain geopolitical and macroeconomic conditions amid the Middle East conflict, adding to “economic and consumer risks”.
Anglo CEO Duncan Wanblad’s commentary on the group’s numbers was absent his usual note of optimism on diamond market prospects. “Synthetic lab-grown diamonds also continued to affect demand for lower-value natural diamonds, adding pressure in more price-sensitive categories,” he said.
There was stronger pricing for higher-value goods, however. This supported “a stable overall average price index throughout the period,” he added.
Anglo announced on July 13 the suspension of production at Venetia, the South African mine, as part of a wider cost-cutting drive; this would not affect overall output targets, since production would be increased at other operations to compensate.
The group said today production guidance for diamonds was unchanged at 21 to 26 million carats but will probably come in at the low end of guidance. This is owing to the Venetia shuttering and maintenance in the second half of the year at De Beers’ Botswana mines, Orapa and Jwaneng, which would “reduce the full year production run-rate”.
Anglo added it would keep its options open on further supply cuts. The group “…continues to monitor rough diamond trading conditions in order to align output with prevailing demand,” it said.
Negotiations for the sale of its 85% stake in De Beers were continuing, Anglo said. According to Moeti Mohwasa, Botswana’s minister for state president, defence and security, Anglo has picked Global Diamond Consortium as its preferred buyer, thought to be led by ex-De Beers MD Gareth Penny.
Conclusion of the deal may not be imminent, however. Botswana, which has a 15% stake in De Beers, has rights preemptive rights over a sale and may choose to negotiate a large slice for itself in the deal structure.
