De Beers is rebuilding its presence in Angola through government partnerships and community engagement, marking a strategic comeback following its difficult exit years ago from the diamond-rich nation.
The company has re-entered Angola through two mineral investment contracts signed in 2022 and a joint venture with state-owned Endiama, supplemented by a Memorandum of Understanding in February 2024.
However, De Beers spokesperson David Johnson cautioned that establishing a revenue-generating mine remains a long-term prospect, telling Rough & Polished's Mathew Nyaungwa that "it would be several years at least before a mine could be developed from a commercially viable deposit."
The Angola re-entry coincides with De Beers navigating significant industry challenges, including recent diamond price volatility.
The company is extending its current Sightholder contracts through mid-2026 to provide near-term stability, with plans to communicate system evolution plans next year.
Meanwhile, Johnson outlined a fundamental market divergence emerging between natural and lab-grown diamonds.
LGD wholesale prices continue to fall, he said, predicting that natural and synthetic diamonds will become established as separate products catering to different consumer needs.
Johnson said that lab-grown diamonds are increasingly finding their main commercial opportunities in high-tech industrial applications rather than jewellery.
The company is responding to market shifts with new marketing strategies, including its "Desert Diamonds" campaign – its first 'beacon' campaign in over a decade – which uses natural colour variations as markers of authenticity.
This forms part of a broader effort to engage younger consumers through collaborations with major retailers like Signet in the US, Tanishq in India, and Chow Tai Fook in China.
He said geopolitical factors present additional challenges, particularly US tariffs on Indian diamond exports, which increase costs in the American market that accounts for over half of global demand.
Against this backdrop, De Beers is positioning natural diamonds around authenticity and enduring value.
Below are excerpts from the exclusive interview.
Your previous exit from Angola was under difficult circumstances. How are you rebuilding trust with the Angolan government and local communities, and what will you do differently this time to ensure a stable, long-term presence?
Prior to the resumption of our exploration activity in Angola, via the signing of the two new mineral investment contracts (MICs) in 2022, De Beers was not operational but maintained an office and presence in the country. Supported by the government reforms and formalised through the MICs, the joint venture partnership with Endiama and the Memorandum of Understanding signed in February 2024, we have forged a collaborative and supportive relationship with the Angolan leadership and the communities within which we operate.
How does operating in Angola, where other major players like Catoca are present, change the competitive dynamics for De Beers in the global rough diamond market?
While we are actively exploring in Angola and are encouraged by our progress to date, no mining operation has been established as yet, and there is no real change anticipated in the global supply context unless and until a mine is established.
What is the projected timeline from exploration to a fully operational, revenue-generating mine?
Establishing the timeline to develop a mine would depend on a range of factors, including the technical profile, the size of the mine and stakeholder considerations, but it would be several years at least before a mine could be developed from a commercially viable deposit.
Beyond mining, what concrete plans does De Beers have to support the development of a local diamond cutting and polishing industry in Angola? How will you ensure Angolan businesses and workers are integrated into your value chain?
We have regular engagements with a range of relevant stakeholders in Angola to consider how we can best work to support the wider Angolan diamond ecosystem. Aspects of the work being undertaken, as part of the MICs and the MOU, are focused on supporting the government's intention to create a modern and transparent natural diamond value chain in Angola. As such, we are confident that we can replicate the success we have delivered in supporting and growing the downstream beneficiation sectors in other diamond-producing partner countries such as Botswana and Namibia.
The diamond industry has experienced significant price volatility recently. How is De Beers adapting its Sightholder system and overall market strategy to provide stability in this uncertain economic climate?
The diamond industry has experienced a very uncertain period recently, and we fully recognise the importance of providing stability for our customers. We will communicate with Sightholders next year on how we will evolve the Sightholder system in the new contract period, having extended the current contract through to mid-2026 in order to provide near-term stability for Sightholders.
How do you see the relationship between natural and lab-grown diamonds developing over the next decade?
Natural diamonds and synthetic or laboratory-grown diamonds (LGDs) are different products with different attributes and different values, and that's becoming ever more pronounced – LGD wholesale prices continue to fall, and while retail prices haven't declined at the same pace, consumer access to information online means that retail prices are expected to continue declining, just like other products of technology. As such, we expect natural diamonds and LGDs to continue to diverge and to become established as separate products in the jewellery sector, catering to different consumer needs. Moreover, we expect the main commercial opportunities for synthetic diamonds to lie in the high-tech industrial space.
While natural diamonds have faced a range of challenges in recent years, we continue to see a positive outlook based on a range of factors, including the continuing high levels of desirability in the key consumer markets, growing numbers of middle class households in emerging markets, refreshed approaches to marketing across the industry, and the introduction of technologies that help to underpin the natural diamond value proposition.
What marketing and messaging strategies are you finding most effective in engaging the younger consumers?
As outlined in our Origins strategy, our focus is on growing the desire for natural diamonds through a renewed focus on category marketing and via collaborations with leading retailers.
As we have progressed the strategy, we have established successful collaborations with leading retailers in key consumer markets – Signet in the US, Tanishq in India and Chow Tai Fook in China – which enable us to amplify the reach and impact of our marketing activities.
This year, we have also launched our first 'beacon' campaign in more than a decade: Desert Diamonds. Desert diamonds speak to the wild nature of diamonds and draw inspiration from the desert landscapes from which many natural diamonds originate, celebrating a spectrum of colours from warm whites to champagne tones and amber hues. Desert Diamonds uses this natural spectrum as a marker of authenticity, offering a fresh way to connect consumers to the story of their unique diamond.
How are geopolitical tensions and sanctions (for instance, on Russian diamonds) reshaping the global supply chain, and what opportunities and risks does this present for De Beers?
Geopolitical factors are affecting many industries in many ways, and the diamond industry is no exception. Tariffs have had the biggest impact due to the 50% tariff rate currently being applied to Indian exports to the US. This has created a significant challenge due to the share of polished diamond supply sourced from India, and the effect it has of increasing the cost of diamonds in the US, which represents more than half of global demand.
However, the negotiations catalysed by the imposition of tariffs do present an opportunity for the international approach to the movement of diamonds across international borders to be reconsidered, and if this encourages the removal of tariffs on diamond imports in all countries, this would be a positive outcome following a challenging period.
Beyond tradition and romance, what is the core value proposition of a natural diamond in a world increasingly focused on sustainability, individuality, and experiential luxury?
Diamonds have a lot to offer in terms of how they support sustainable development in producing countries and other nations involved in the value chain; they are unique and enduring representations of individuality; and we are increasingly identifying ways to connect diamonds to experiential moments and activities, while also evolving the opportunities at retail so that buying a diamond in itself becomes more of an experience.
However, the world is not only focused on these themes. There is also a sharply growing focus on topics such as the importance of authenticity in a world increasingly characterised by Artificial Intelligence, deepfakes and fake news; and a focus on permanence, meaning and legacy in a world increasingly purchasing fast fashion and disposable products. Working with a natural treasure that is a byword for authenticity and enduring value offers exciting potential.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
