Bloomberg

Anglo American Expects to Take a Writedown on De Beers Unit

By Mark Burton and Thomas Biesheuvel

6 februari 2025 at 08:41 CET

Anglo American Plc expects to take a writedown on its De Beers business as plunging diamond sales prompt cuts in output.

The company is likely to book an impairment in upcoming full-year results due to deteriorating market conditions, particularly in China, Anglo said in a statement

Thursday. It sees a marginal 2024 loss for De Beers.

The mining giant offered De Beers for sale last year as part of a sweeping overhaul launched in the wake of a takeover approach by BHP Group. The broader restructuring has progressed well, but slumping sales at De Beers are creating a dilemma for Anglo’s management.

Chief Executive Officer Duncan Wanblad said earlier this week that the company intended to exit De Beers by the end of this year, but given the state of the market that could spill over into 2026.

Anglo on Thursday announced sharp cutbacks to diamond production, with output expected to be as low as 20 million carats in 2025, down from earlier guidance of as much as 33 million carats.

Fourth-quarter volumes dropped 26% year-on-year to 5.8 million carats, it said.