Diamonds Prices Plummet, Leading to Increased Losses for Anglo American; Trade Frictions Escalate
In the first half of 2025, Anglo American reported a net loss of US$1.9 billion, with a 7 percent year-on-year drop in revenue to US$8.95 billion, due in part to global trade disruptions and a prolonged downturn in the rough-diamond market. De Beers, Anglo American's diamond division, posted a US$189 million loss during the same period.
The company's diamond brand is currently the focus of an active divestment process, with Anglo American in the second round of a formal sale process involving a credible set of interested buyers. A potential trade sale is preferred and could be finalized within six to nine months, but it depends on finding the right buyer. In the event that a trade sale does not materialize, Anglo is preparing for an initial public offering (IPO) of De Beers, with possible listings being considered on exchanges in London, Johannesburg, or New York. The IPO timing is likely to be early to mid-2026, contingent on a recovery in diamond prices.
The government of Botswana, which currently owns 15% of De Beers, has expressed strong interest in increasing its stake to majority control. Botswana produces about 70% of De Beers' diamonds through the Debswana joint venture, and the government insists on having a say in any sale or ownership change.
Anglo American has not yet classified De Beers as held for sale due to ongoing uncertainties around the legal structure, terms, and regulatory approvals for the transaction. The company values De Beers at around $4.9 billion, having taken substantial impairments over recent years.
Meanwhile, Anglo American is making strides in other areas. The company's CEO, Duncan Wanblad, mentioned in a recent performance report that Anglo is focusing on copper, iron ore, and crop nutrients. The company has designated its steelmaking coal and nickel operations as discontinued. Anglo American reported a 127 percent year-on-year increase in U.S. refined copper imports in the first five months of 2025, but a recent announcement from President Donald Trump spared refined copper imports from sweeping new tariffs but left semi-processed products exposed, causing a sharp drop in copper prices and dislocating demand patterns. Sales for Anglo American's steelmaking coal and nickel operations are agreed but not yet finalized.
The De Beers' Venetia mine in South Africa is undergoing a costly underground expansion aimed at extending its life beyond 2040. Anglo American has already recorded US$3.5 billion in impairments related to De Beers over the past two years.
Regardless of the group's eventual exit from the diamond sector, Anglo remains engaged with stakeholders on the mine's future. The company's copper operations are expected to account for over 60 percent of Anglo American's group EBITDA post-restructuring, according to internal forecasts. Underlying EBITDA fell 20 percent to US$3 billion for the first half of 2025. Anglo American slashed its interim dividend to US$0.07 per share, down from US$0.42 last year.
The divestment of De Beers is progressing, with Anglo being in the second round of its formal sale process. Anglo American is pursuing both a trade sale and an IPO for De Beers, its diamond brand. The company is in discussions with the government of Botswana, which holds a 15 percent stake in De Beers, about potentially increasing its ownership.
- Anglo American is pursuing business opportunities in various sectors, with a focus on the finance and energy industries, particularly in copper, iron ore, and crop nutrients, due to the CEO's recent announcements.
- The energy sector is significant for Anglo American, as its copper operations are predicted to contribute over 60 percent of the company's group EBITDA post-restructuring, according to internal forecasts.
