Duncan Wanblad, CEO of Anglo American, admitted the diamond sector, including De Beers, missed opportunities by underestimating lab-grown diamonds’ surge, a shift that transformed the global gem market and squeezed traditional producers.
Industry players anticipated the downturn would follow previous cycles, with demand and prices recovering swiftly. Yet, the increasing popularity of lab-grown diamonds has altered consumer purchasing choices.
Wanblad remarked, ‘Looking back, we likely should have reacted more strongly to the indicators we were seeing.’ He pointed out that prior market declines had usually been brief.
The comments come as Anglo American continues efforts to sell De Beers, which it has written down in value over the past three years. The divestment process is progressing, although a preferred bidder has yet to be selected.
Financial results show that average rough diamond prices fell 32% in the first half of the year to $105 per carat. De Beers also posted a cash loss of $113 million during the period.
Despite the weakness in its diamond division, Anglo American reported underlying earnings of $4 billion for the first half, supported by stronger copper prices.
Lab-grown diamonds have emerged as a major force in the jewellery market, offering consumers a more affordable alternative while providing retailers with stronger sales volumes and higher profit margins. Their growing acceptance has intensified pressure on natural diamond producers, leading to production cuts and mine closures.
Last month, De Beers announced it would temporarily suspend production at its Venetia mine in South Africa. Wanblad said roughly one-fifth of current natural diamond supply is expected to leave the market within the next year, with few of those operations likely to resume production.
On the sale of De Beers, Wanblad declined to comment on a potential valuation but stressed that Anglo American remains in discussions with multiple interested parties. Among the groups linked to a possible acquisition is a consortium led by former De Beers chief executive Gareth Penny, which has reportedly explored a deal valued at around $1 billion. Other bidding groups are said to include teams led by Diacore Group executive chair Nir Livnat and Burgundy Diamond Mines non-executive chair Michael O’Keeffe.
