Anglo American has warned that it may cut the value of De Beers Mining Company for the third time in as many years, underlining the depth and persistence of the slump facing the global diamond market and renewing uncertainty for Botswana, De Beers’ long-standing partner.
In a statement ahead of its full-year results, Anglo said it is conducting an impairment review of De Beers’ carrying value, citing weak market conditions. The review could result in another write-down, following a $2.9 billion impairment booked last year and a $1.6 billion reduction in 2023.
For Botswana, which owns the remaining 15 percent of De Beers, a further impairment would reinforce concerns about the near-term outlook for a sector that underpins government revenues, foreign exchange earnings and employment. More than $2 billion of De Beers’ value was previously linked to unsold inventory, reflecting sluggish demand in key markets such as China and rising competition from lab-grown diamonds.
De Beers is now valued below the price Anglo paid in 2011 to acquire the Oppenheimer family’s 40 percent stake, highlighting how sharply fortunes have turned for the world’s largest diamond producer.
Anglo has made clear that diamonds are no longer core to its strategy. The group is pursuing options to sell or potentially list De Beers as part of a broader portfolio reset, following last year’s defence against a takeover bid by BHP and as it advances a major transaction with Teck Resources.
Botswana government has previously expressed interest in increasing the country’s stake in De Beers, a prospect that could gain urgency if Anglo proceeds with an exit. However, another write-down would complicate valuation talks, at a time when the diamond market shows few signs of a rapid recovery.