Diamond producer De Beers reported an 11% year-on-year decline in rough diamond production to 6.8mn carats in the third quarter of 2026, driven by planned maintenance at its Botswana operations and preparations for a two-year production suspension at South Africa’s Venetia mine.
Botswana, the group’s largest producing country, recorded a 20% decline in output to 4.83mn carats from 6.03mn a year earlier, while South African production fell 37% to 418,000 carats from 659,000, according to a production report released by De Beers on October 20.
Total group production also declined 13% from the preceding quarter’s 7.78mn carats, reflecting the maintenance at Orapa and the ramp-down at Venetia.
De Beers, which is 85%-owned by Anglo American (LSE: AAL; JSE: AGL), said Botswana’s decline was primarily attributable to planned maintenance at the Orapa mining complex.
Production at Orapa fell 36% year on year to 1.85mn carats from 2.88mn, while output at Jwaneng declined 5% to 2.98mn carats from 3.15mn.
Further production reductions are expected in Botswana during the fourth quarter. De Beers said planned maintenance at Jwaneng would substantially reduce output compared with the third quarter.
In South Africa, Venetia’s production fell 43% from the preceding quarter as the mine reduced mining and processing activities ahead of a planned two-year production pause.
De Beers said no further diamond production was expected at Venetia during the remainder of 2026, although work associated with preparing the mine for the suspension would continue into early 2027.
The reductions in Botswana and South Africa were partly offset by stronger production in Canada and Namibia.
De Beers’ attributable Canadian production more than doubled to 1.06mn carats from 511,000 a year earlier, reflecting the planned processing of higher-grade ore at Gahcho Kué. The figures are based on its former 51% interest in the mine.
De Beers also announced that it had assumed full ownership of Gahcho Kué on October 16 after enforcing security over the 49% interest previously held by Mountain Province Diamonds.
The change means De Beers will report 100% of the Canadian mine’s production and sales from the fourth quarter, rather than its previous 51% attributable share. The accounting change will increase the group’s reported production without increasing the mine’s actual physical output.
In Namibia, diamond production rose 8% to 495,000 carats from 457,000. Output from offshore producer Debmarine Namibia increased 21% to 366,000 carats, offsetting a 16% decline at Namdeb’s land-based operations.
Despite the weaker third-quarter performance, De Beers’ production over the first nine months of 2026 reached 21.72mn carats, up 22% from 17.87mn in the corresponding period of 2025. Botswana’s nine-month production increased 14%, even after the latest quarterly decline.
Diamond sales increase despite weaker prices
De Beers reported signs of stabilisation in rough diamond trading during the third quarter, supported by improved consumer demand in the United States and India.
Rough diamond sales volumes increased 71% year on year to 9.77mn carats from 5.72mn. On a consolidated basis, which excludes joint-venture partners’ shares of certain sales, volumes rose 91% to 8.71mn carats from 4.56mn.
Consolidated rough diamond sales revenue nevertheless increased only 4% to $731mn from $700mn, reflecting sharply lower realised prices and changes in the mix of diamonds sold.
The average realised price fell 45% to $84 per carat from $154 in the corresponding quarter of 2025. For the first nine months, the average price declined 37% to $97 per carat, partly reflecting an 18% decline in the group’s rough diamond price index and changes in the sales mix.
De Beers said competition from laboratory-grown diamonds continued to affect demand for lower-value natural stones, particularly in price-sensitive market segments.
Production guidance raised after Canadian ownership change
De Beers increased its full-year 2026 production guidance to 25mn–28mn carats from 21mn–26mn carats, primarily reflecting its assumption of full ownership of Gahcho Kué.
The revised guidance does not indicate a comparable increase in global diamond supply, as the Canadian mine’s physical production remains unchanged by the ownership transfer.
The company also lowered its expected unit production cost to approximately $70 per carat from $80, citing the greater contribution from Gahcho Kué, the Venetia production pause and cost-control measures across its operations.
De Beers said it would continue monitoring trading conditions and adjust output to prevailing market demand.
The production update comes as Anglo American seeks to dispose of its controlling interest in De Beers. In July, Botswana said a consortium led by former De Beers chief executive Gareth Penny had been selected as preferred bidder.
Botswana, which owns the remaining 15%, is negotiating to increase its holding. Reports in October suggested the government could raise its stake to approximately 25%, although no completed transaction has been confirmed.
For Botswana, the planned fourth-quarter reductions at Jwaneng could add to pressure on an industry central to the country’s export earnings and public finances. Diamonds typically generate about a third of government revenue and three-quarters of foreign-exchange earnings. Moody’s downgraded Botswana to Baa2 in September, citing weaker diamond revenues, and warned of further pressure if the government made a large debt-financed investment in De Beers.
See IntelliNews: Botswana reportedly nears deal for 25% De Beers stake as Anglo American sale advances
See IntelliNews: Botswana says Anglo American selects preferred bidder for De Beers stake
See IntelliNews: Botswana downgraded to Baa2 by Moody’s as diamond slump strains public finances