- EBC Financial Group (EBC) argues that proposed mining pause, talks over 1,214 jobs and Finsch’s suspension suggest weak diamond demand is now reducing South Africa’s mining output, investment and employment.
De Beers Group’s proposed two-year production pause at Venetia poses a much greater risk to South Africa than to the company’s wider global operations. Over 1,200 employees are included in a formal consultation over possible job cuts, according to the National Union of Mineworkers (NUM), including 1,134 workers at Venetia and another 80 at De Beers Sightholder Sales South Africa (DBSSSA).
The diamond producer previously estimated that Venetia supplies around 40% of South Africa’s annual diamond production, even though the mine accounted for only about 10% of De Beers’ group output in the first quarter of 2026.
De Beers has held its 2026 production target steady, with output from other mines expected to cover the shortfall. However, with production also suspended at Finsch, South Africa’s second-largest diamond operation, and 1,214 De Beers jobs under consultation, the Venetia pause may signal a broader decline in the country’s diamond output, investment and employment.
David Precious, Senior Market Analyst at EBC Financial Group, said, “De Beers may have options that South Africa may not. The group can rely on production from other mines, while the jobs, suppliers and local spending tied to Venetia remain in Limpopo. That is why a two-year pause at one operation could have a much wider effect on the country’s diamond sector.”
Higher Output Has Not Stopped Investment Delays
Venetia increased production by 53% year on year to 740,000 carats in the first quarter of 2026. The group’s average price received also fell 19% to US$101 per carat, and its rough diamond price index, which tracks price movements, declined 17%.
The mining company reduced spending on mines and major projects by 34% to US$353 million in 2025, partly by delaying work on Venetia’s underground expansion. Its underlying operations lost US$511 million, and Anglo American wrote down De Beers by US$2.3 billion on lower expected prices, weaker demand and oversupply.
The consequences could continue after the proposed pause ends as Venetia’s US$2.3 billion underground project was designed to produce about four million carats a year and extend the mine’s life until at least 2045. Further delays might reduce production after reopening, postpone supplier contracts and weaken the case for retaining skilled workers throughout the shutdown.
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Problems at Finsch Make De Beers’ Venetia’s Output Harder to Replace
Petra Diamonds placed Finsch, South Africa’s second-largest diamond operation by production, into business rescue in May 2026. This is a formal process intended to help a financially distressed business recover. The mine operator later suspended production while a rescue plan is prepared.
Finsch’s suspension reduces the possibility that the country’s second-largest diamond operation could help offset lost Venetia output. If both mines remain below normal production, other operations may need to increase output substantially to limit a decline in the national total.
Less activity at the two mines could also reduce work for transport, engineering, maintenance and equipment suppliers in Limpopo and the Northern Cape. Problems at more than one major operation may make investors more cautious about funding other diamond projects in the country.
Overseas Demand Limits What Can Be Fixed at Home
The United States (US) remains the largest market for diamond jewellery, while India is the main cutting centre for natural diamonds. De Beers has also reported weak demand in China and continued competition from laboratory-grown diamonds.
A mine can lift production without prices strong enough to justify further investment. Recovery may hinge on consumer demand and processing abroad, not just how efficiently Venetia runs.
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Labour, Government and Ownership Could Shape the Outcome
How many skilled employees remain after the Section 189A consultation could affect the cost and speed of any restart. Experienced workers who leave the industry or move elsewhere might need to be replaced, while new employees could require training before Venetia returns to its planned scale.
NUM has asked the Department of Mineral and Petroleum Resources (DMPR) and the Department of Employment and Labour to examine alternatives to job cuts. Government action may not necessarily restore global diamond demand, but it can influence how the effects on workers and nearby communities are managed during the pause.
A new controlling investor could also influence whether Venetia receives the money needed to reach full underground production. Botswana’s government said Anglo American had identified the Global Diamond Consortium as the preferred bidder for De Beers, although no final sale has been announced. Anglo American owns 85% of the group, while the Government of the Republic of Botswana owns the remaining 15%.
“Venetia may not return in the same shape after two years.” Precious added. “Its restart may depend on how many skilled workers are retained, whether the government becomes involved and how the eventual owner ranks the mine against other projects.”
The risk goes beyond two years of lost production. Prolonged delays, an exodus of skilled workers and an extended Finsch suspension could erode the country’s mine count, output and diamond supply chain.
