Anglo American has announced a new $2.3 billion impairment on De Beers, in which it owns an 85% stake, according to its financial report released on Friday, February 20, seen on Ecofin Agency.
This follows a previous $2.9 billion writedown recorded in 2024.
The latest adjustment reflects continued weakness in the natural diamond market, which has weighed on valuations, as Anglo American moves forward with plans to divest the subsidiary. De Beers operates notably in Botswana, Namibia, and Angola.
Natural diamond producers have faced challenging market conditions for several years, particularly as laboratory-grown diamonds gain market share.
Growing consumer preference for synthetic stones, combined with lower demand and falling prices for natural diamonds, has pushed companies to revise their production strategies.
De Beers reduced output by 12% in 2025 to better align with demand. These ongoing pressures led Anglo American to record the new impairment.
“This impairment is due to lower forecast prices than previously expected, resulting from increased consumer preference for synthetic diamonds over natural diamonds, as well as a surplus of rough diamonds available relative to current demand,” Anglo American stated in its report.
The accounting adjustment comes as Anglo American continues to make progress in separating De Beers from its portfolio.
The mining group has been implementing a restructuring plan for several months to streamline its assets and exit businesses it considers non-core.
As part of this strategy, it completed the spin-off of Valterra Platinum in May 2025. The planned sale of De Beers is another key step in this transformation.
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Anglo American has scheduled a structured sale process for De Beers, targeting completion in 2026, though it has not disclosed details about negotiations.
With limited information available, investors are closely watching how the repeated impairments may influence the final terms of the transaction. Interest from several African governments has added another layer of uncertainty.
Botswana, which hosts De Beers’ main production sites and holds a 15% minority stake, has indicated it wants to increase its holding to a majority position.
Angola has also announced plans to pursue a 20% to 30% stake. There have been discussions about forming a “pan-African partnership” that could involve other countries connected to De Beers’ operations, including Namibia and South Africa.
International investors have also shown interest. Indian billionaire Anil Agarwal is seen as a potential bidder, along with Indian diamond companies KGK Group and Kapu Gems.
With diamond market indicators remaining weak and De Beers lowering its 2026 production guidance again, the final outcome of the sale process remains uncertain.
Anglo American’s next strategic moves will be critical, especially as the company also works to complete its planned merger with Teck Resources.
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