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Struggling diamond market complicates Anglo's De Beers plan

Diamond companies have not fared well on the public markets and any deal is further complicated by the De Beers' Botswana mines
July 9, 2024
  • Anglo American is planning to sell or spin off the historic diamond miner
  • Listing would radically increase clarity around diamond supply chain

Diamonds have held little sparkle for investors in recent years. Prices rose during the pandemic as spending power grew in the US and China, but a striking fall in the past two years has left miners on shaky footings and those further down the supply chain battling cheaper, lab-grown alternatives.

This is the backdrop Anglo American (AAL) faces as it considers an initial public offering (IPO) for De Beers, the historic miner that is largely responsible for the size of the diamond market, which is driven by engagement rings. The move is part of a restructure to allow Anglo to focus on copper, iron ore and fertilisers.

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