Editor’s Note
Anglo American is reportedly weighing another significant write-down of its De Beers diamond business, which would mark the third such impairment in two years. This reflects the persistent slump in the global diamond market, underscoring the ongoing challenges facing the luxury goods sector.
Anglo American is considering cutting the book value of its De Beers diamond unit for the third time in just two years, citing prolonged weakness in global diamond demand.
In a statement accompanying the quarterly production guidance issued to stakeholders last week, the mining giant said it is conducting an impairment review of the miner’s carrying value, a move that could result in another write-down when full-year results are released later this month.
If confirmed, the write-down would follow a $2.88 billion reduction made last year, which lowered De Beers’ carrying value to $4.1 billion. In late 2023, Anglo had already written down the diamond business by a further $1.56 billion.
Anglo American is expected to disclose the final impairment figure when it publishes its financial results on February 20. The company has also revised De Beers’ production outlook for 2026, saying output would be adjusted to reflect subdued demand. Production is now forecast at between 21 million and 26 million carats, down from the earlier guidance of 26 million to 29 million carats.
Market pressures were further reflected in pricing. De Beers’ rough-diamond price index declined 12% in 2025 on a like-for-like basis.