De Beers will suspend production at its Venetia mine in Limpopo for two years as the global natural diamond industry battles weak demand and growing competition from laboratory-grown diamonds.
De Beers announced Monday it will pause production at South Africa's largest diamond mine for two years to reduce costs while trading conditions remained tough.
De Beers is majority-owned by British mining giant Anglo American, which is seeking to offload its stake as the natural diamond market faces intense pressure from laboratory-grown gems.
It said "rough diamond trading conditions are expected to remain challenging in the near-term" with production decreasing and several producers closing mines.
"Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project," it said in a statement.
