De Beers has suspended production at its Venetia mine in South Africa’s Limpopo province for two years, a move that places more than 1,200 permanent jobs in jeopardy.
The decision marks a significant contraction in output at the country’s largest diamond mine, located in Alldays, as the company seeks to navigate a challenging near-term market environment.
Workers at the site have expressed shock at the sudden halt, with the National Union of Mineworkers (NUM) confirming the suspension.
The production stoppage is part of a broader cost-saving strategy by the diamond giant, which is responding to persistent pressure on diamond prices and weakening global demand.
By idling the mine, De Beers aims to reduce operational expenditures while preserving capital for higher-margin assets.
The suspension underscores the structural challenges facing the traditional diamond industry, where synthetic alternatives and shifting consumer preferences have eroded pricing power.