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While the sparkle has dimmed somewhat for global diamond giant De Beers, Namibia’s diamond mines are proving to be a resilient source of carats, new figures reveal. Anglo American, the parent company of De Beers, announced that Namibia unearthed a glittering 631,584 carats of rough diamonds in the first quarter of 2025, ending March 31st.
This impressive output comes from the joint ventures between De Beers and the Namibian government, with the offshore marvel Debmarine Namibia leading the charge by contributing a hefty 461,395 carats. Meanwhile, Namdeb’s land-based operations added a respectable 170,189 carats to the national treasure chest.
Interestingly, Namibia’s diamond production has remained remarkably stable, showing only a slight increase from the 584,000 carats mined in the final quarter of 2024. This steadiness is attributed to strategic adjustments within the operations. Anglo American noted that planned reductions at Debmarine Namibia were cleverly balanced by the mining of richer diamond-bearing areas and improved recovery rates at Namdeb.
However, the global picture for De Beers paints a less dazzling scene. Overall rough diamond production for the company plummeted by 11% to 6.1 million carats. This downturn reflects De Beers’ deliberate strategy to curb production in response to a prolonged period of sluggish demand in the market.
Other key diamond-producing regions within De Beers’ portfolio also experienced declines. Botswana saw an 8% decrease to 4.6 million carats due to planned production cuts. South Africa’s output took a more significant hit, falling by 19% to 0.5 million carats, a consequence of changes in work schedules compounded by the disruptive heavy rainfall and flooding in January, which temporarily hampered access to mining sites. Canada’s production also saw a substantial 40% drop to 0.4 million carats as the focus shifted to processing lower-grade ore.
Despite a glimmer of hope in the United States, where consumer demand for diamond jewellery during the year-end holidays met expectations, the rough diamond market continues to feel the chill. De Beers reported that demand in the first quarter remained subdued as the midstream sector adopted a cautious approach to restocking, grappling with surplus inventories of loose polished diamonds.
While there are tentative signs of stabilisation in loose polished diamond prices, offering a sliver of optimism to the industry, De Beers cautioned that ongoing global economic uncertainties, particularly the looming impact of US tariffs, are likely to keep buyers hesitant in the near term.
“We continue to manage the business to preserve cash while maintaining underlying value,” the company stated, navigating the challenging market conditions.
The impact of this cautious environment is evident in De Beers’ sales figures. Rough diamond sales from two trading events in the first quarter of 2025 totalled 4.7 million carats (4.2 million carats on a consolidated basis), generating a consolidated revenue of US$520 million. This is a significant drop compared to the same period last year, where two sights yielded 4.9 million carats (4.6 million carats consolidated) and a much brighter revenue of US$925 million.
Despite the current headwinds, De Beers has maintained its production guidance for the full year of 2025 at 20 to 23 million carats (on a 100% basis), signalling a degree of confidence in a potential market recovery. The company affirmed its commitment to closely monitoring rough diamond trading conditions and will adapt its strategies as needed, suggesting a flexible approach in navigating the uncertain landscape of the global diamond industry. For now, Namibia’s steady contribution provides a solid foundation for De Beers amidst the broader market fluctuations.
