Anglo American has booked a $2.3 billion impairment on De Beers for the 2025 financial year, its second massive writedown in as many years, as falling natural diamond prices and rising competition from lab-grown stones continue to erode valuations ahead of a planned 2026 divestment.
Anglo American disclosed the fresh impairment in its annual financial report published on February 20, 2026. It follows a $2.9 billion writedown taken in 2024, bringing total De Beers writedowns over two years to roughly $5.2 billion. Anglo holds an 85% stake in De Beers; Botswana holds the remaining 15%.
The company attributed the impairment to lower forecast diamond prices driven by growing consumer preference for lab-grown diamonds over natural stones, and a structural surplus of rough diamonds relative to current demand. De Beers cut production by 12% in 2025 to try to rebalance supply and has lowered its 2026 production guidance again. Anglo American stated in its report that the impairment reflects “lower forecast prices than previously expected, resulting from increased consumer preference for synthetic diamonds over natural diamonds, as well as a surplus of rough diamonds available relative to current demand.”
Anglo American confirmed a structured sale process targeting completion in 2026. De Beers operates flagship mines in Botswana, Namibia and South Africa and is one of the world’s largest rough diamond producers by volume. The transaction is one of several asset disposals Anglo is managing simultaneously. It spun off Valterra Platinum in May 2025 and is also working to finalise a merger with Canada’s Teck Resources.
Botswana, which hosts De Beers’ most productive mines including Jwaneng, has signalled it wants to convert its 15% minority stake into a majority shareholding. Angola has separately announced its intention to acquire a 20 to 30% stake. Proponents of a pan-African partnership have suggested Namibia and South Africa could also participate. On the international side, Indian billionaire Anil Agarwal has emerged as a potential bidder alongside Indian diamond firms KGK Group and Kapu Gems, significant given India processes roughly 90% of the world’s rough diamonds.
Context
De Beers once dominated the global diamond trade through its single-channel marketing system, but that model has been under sustained pressure for over a decade. Lab-grown diamonds, which are physically identical to mined stones but cost a fraction of the price, have captured a growing share of the jewellery market, particularly among younger consumers in the US and China. Natural diamond prices have fallen sharply since 2022, with rough stone prices at their lowest levels in years. For Anglo American, which bought full control of De Beers in 2011 for around $5.1 billion, the succession of impairments represents a painful reassessment of the asset’s long-term value. The total impairments now roughly match the original acquisition cost.
Why It Matters for Africa
De Beers is not simply a mining company for the countries involved. It is a cornerstone of national revenues and employment. Botswana derives roughly a third of its government revenues from diamond royalties and taxes, largely from De Beers joint ventures. The outcome of the sale will determine who controls that revenue stream and on what terms. A pan-African buyout would give producer nations direct equity upside rather than just royalty income, but assembling the financing across multiple sovereign buyers while meeting Anglo’s price expectations is a significant structural challenge. The timing matters too: the sale is happening precisely when natural diamond market fundamentals are weakest, potentially offering producer nations an entry at a lower valuation, but also raising questions about what the asset is worth at all in a world where synthetic stones continue to gain ground.
Source: Ecofin Agency
