Anglo American is poised to decrease the value of its De Beers diamond business for the second time in a year due to challenging market conditions. This comes as the company plans to either sell or list De Beers as part of a restructuring strategy. The London-listed miner cited a decline in global diamond demand, particularly in China, as a contributing factor to the potential impairment.
Anglo American is “likely” to write down the value of its De Beers diamond business for the second time in a year because of poor market conditions, underscoring the challenges of a potential public listing of the unit. The announcement on Thursday comes as the London-listed miner prepares to spin out or sell the diamond business as part of a radical restructuring programme launched last year during its defence against a £39bn takeover offer from rival BHP.
The global diamond market has been in turmoil as cheap lab-grown diamonds, which cost one-twentieth the price of a mined diamond, have flooded the market, and as demand has failed to recover after the Covid-19 pandemic. The average selling price of De Beers diamonds dropped 20 per cent in 2024, compared with the prior year, even though the company also cut production by 22 per cent last year in an effort to stabilise the market, according to production figures published on Thursday.
DIAMONDS MARKET CONDITIONS IMPAIRMENT DE BEERS ANGLO AMERICAN
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