Editor’s Note
This article highlights the significant challenges facing the traditional diamond industry, as evidenced by Anglo American’s third major write-down of De Beers’ value in as many years. The pressures from falling prices, market oversupply, and a consumer shift toward lab-grown alternatives underscore a pivotal moment for the sector.
The valuation of the diamond subsidiary De Beers was reduced to $2.3 billion following the latest accounting review applied by Anglo American, marking the third depreciation of the asset within a three-year period. These successive reductions are due to falling diamond prices, a surplus of rough gems, and a shift in consumer preferences increasingly leaning towards lab-grown diamonds. This series of events led the British mining consortium Anglo American to close the 2025 fiscal year with losses of $3.741 billion (€3.176 billion), according to the company’s own publication and confirmed by various press releases reviewed by the media.
According to Anglo American’s report, the 2025 accounts reflected an asset impairment that increased losses by 22% compared to the previous year, primarily driven by the negative impact of a $2.3 billion write-down of De Beers’ value. The British group detailed that this correction reflects the new context of the diamond market, where abundant inventories and lower demand for natural stones have reduced the subsidiary’s value. In total, the write-downs on De Beers over the past three years amount to $6.8 billion (€5.77 billion), adding to the impairments previously made in 2024 and 2023, valued at $2.9 billion and $1.6 billion respectively.
This set of circumstances led Anglo American to revise key sections of its strategy, as reported by the specialized media. Duncan Wanblad, the group’s CEO, stated:
Wanblad’s statements, disseminated by the group, highlighted progress in operational priorities and the optimization of its industrial portfolio.
Among the highlighted measures, Anglo American emphasized the sale of its steelmaking coal division, which has already been completed, and the ongoing process of selling its nickel business, which remains pending regulatory approval. The mining group also noted that the corporate separation of De Beers continues to develop as part of its strategy to adapt to the new challenges facing the raw materials industry.
The media indicated that another fundamental strategic move of the year was the announcement of the merger between Anglo American and Teck Resources, formalized in September. This agreement between the British and Canadian miners will result in a company named Anglo Teck with a combined market capitalization of $53 billion (€44.85 billion). By pooling assets, 62.4% of the new group will be held by Anglo American shareholders, while 37.6% will belong to Teck shareholders, pending the completion of the integration process.
The decision to merge with Teck responds to both firms’ desire to consolidate their position as key suppliers of critical minerals, addressing a global demand that requires essential materials for industrial development, the energy transition, and the manufacturing of technological goods, as detailed in the Anglo American press release reproduced by various financial media.
Anglo American and De Beers have seen their performance affected not only by macroeconomic factors but also by profound transformations in the luxury and mining industries, especially due to the advance of synthetic diamonds and international market volatility, notes the report shared by the company. The British company specified that pressure on natural diamond prices and the lack of stable growth in demand constitute persistent challenges whose management will continue to shape its corporate strategies in the coming years.