Losing its shine: De Beers will now aim to produce between 26 and 29 million carats this year
Anglo American has cut its diamond production target by more than a fifth as demand for its sparkles sinks.
The FTSE 100 mining giant said its De Beers unit, famous for coining the phrase “A diamond is forever” in the 1960s, will aim to produce between 26 million and 29 million carats this year.
This is down from the previous target of up to 32 million carats. It comes after a dismal 2023 for the group, which saw diamond prices fall and excess stocks build up.
De Beers posted a loss of £203m last year, down from a profit of £805m the year before.
And last month, Anglo American wrote down the value of the De Beers subsidiary by £1.3bn.
Demand for gems has declined since the pandemic as consumers shift their money toward travel and spending slows in the United States and China, the world’s two largest diamond markets.
Anglo-American The shares fell 2.3 percent yesterday.