De Beers has confirmed a 5% decline in its Namibian rough diamond production for the second quarter of 2025, with the drop attributed to planned cutbacks in marine mining under Debmarine Namibia.
The company’s operational review resulted in the permanent retirement of the Coral Sea mining vessel and the removal of the Grand Banks from service, pending a final decision on whether to decommission or sell it.
The two vessels had been instrumental in sustaining Namibia’s offshore diamond output.
The Coral Sea, which had served in the Debmarine fleet since 2008, was the first to be officially retired as part of a broader fleet optimisation strategy.
The Grand Banks, while not formally decommissioned, has ceased operations. These changes have significantly affected Debmarine Namibia’s seaborne capacity, which has historically accounted for the majority of the country’s diamond production.
While marine volumes declined, De Beers was able to partly offset the downturn through higher-grade land-based mining by Namdeb.
Land operations, including those in the Oranjemund area, have shown consistent performance after recent reinvestment initiatives by the Namdeb joint venture.
Overall, De Beers’ global rough diamond production fell 36% to 4.1 million carats in Q2 2025, reflecting ongoing market pressures.
The Namibian share was 0.5 million carats for the quarter. The company maintained its full-year production guidance at 20 to 23 million carats but warned that rough diamond trading conditions remain under pressure.
Despite steady consumer demand, De Beers noted weaker sales margins and the potential for negative EBITDA in the first half of 2025.
Namibian operations, particularly offshore, are expected to remain subdued for the rest of the year unless marine fleet adjustments are reversed or new vessels introduced.
The shift away from legacy vessels marks a turning point for Namibia’s diamond sector, raising questions about future fleet investment under the evolving De Beers strategy, especially in the context of Anglo American’s ongoing review of its stake in the diamond group.
