Mining giant De Beers has announced a two-year suspension of production at South Africa's largest diamond mine, Venetia, as falling demand and competition from cheaper lab-grown diamonds continue to erode profits.

The Venetia mine accounts for over 40% of South Africa's diamond output and employs more than 4,000 people. The shutdown is expected to have significant economic repercussions for the region.

De Beers is majority-owned by Anglo American, which is reportedly seeking to sell the diamond unit and shift focus to the booming copper market, driven by the AI revolution.

The diamond industry has seen rough diamond prices nearly halve since 2022. Consumers are increasingly turning to lab-grown diamonds due to ethical concerns over mining practices.

De Beers' founder Cecil Rhodes was a British colonialist whose legacy remains controversial, sparking debates over decolonization of institutions bearing his name, including Oxford University's Rhodes Scholarships.

Source: www.bbc.co.uk