JOHANNESBURG, July 14 (Xinhua) -- De Beers Group intends to pause production at the Venetia mine in South Africa's Limpopo Province for two years as part of efforts to reduce costs amid challenging trading conditions in the natural diamond industry, according to a statement released on Monday.
The company said that production at its other operations would continue at current levels, while its overall production guidance would remain unchanged.
During the proposed pause, De Beers would continue investing in critical infrastructure to improve the mine's capacity and efficiency, preparing it for future production growth once business and industry conditions improve, according to the statement.
"In line with our commitment to focus and streamline our business, we are making a number of changes to De Beers to ensure greater business resilience in the near term, while supporting long-term value creation," said the group's Chief Executive Officer Al Cook.
The proposed suspension forms part of the company's broader efforts to streamline its business and reduce costs. Since 2024, De Beers has cut more than 100 million U.S. dollars in annual overhead costs and sold or closed several non-core assets.
Venetia accounts for about 40 percent of South Africa's annual diamond output and is the country's largest diamond producer by value. It has been in operation for more than 30 years.
The global natural diamond market remains under pressure from falling prices and growing competition from laboratory-grown diamonds.
The industry continues to face weak near-term trading conditions, although global rough diamond supply is declining and consumer demand is showing signs of improvement in the United States and other markets, particularly for higher-quality diamonds, Cook added. ■