---
title: "Anglo American is facing a diamond crisis due to sluggish sales of luxury goods"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-10-25T04:56:20+00:00"
modified: "2024-10-25T04:56:20+00:00"
date: 2024-10-25
canonical: "https://stockmark.it/anglo-american-is-facing-a-diamond-crisis-due-to-sluggish-sales-of-luxury-goods/"
category: "Business"
categories: ["Business"]
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format: "news"
language: "en-GB"
---

# Anglo American is facing a diamond crisis due to sluggish sales of luxury goods

**Published:** October 25, 2024
**Author:** Stockmark.IT Website
**Categories:** Business
**Featured image:** ![Rows of sparkling diamond-shaped crystals hang against a dark background. Luxury goods sales impact. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-10-25T055345.671.jpg?fit=1200%2C800&quality=89&ssl=1)

---

Anglo American could be pushed to further reduce its diamond production this year by a fall in luxury consumer spending, which would complicate plans for the sale or stock exchange flotation of trophy business.

Anglo American stated that the recovery of diamond markets was expected to take “prolonged”, as the depressed demand in China and the higher stockpiles held by the processing companies raises the possibility of a further reduction in diamond production.

Duncan Wanblad said that Anglo, the chief executive of Anglo, will continue to evaluate options for reducing production in the future.

De Beers diamonds, modeled by Lupita Nyong’o, are being affected by a lower demand in China

The rough diamond production fell by 25% during the third quarter, to 5.6 millions carats. This brings the total production for the year so far to 18.9million carats. This is a 21% decrease compared to the previous year.

The FTSE-100 miner is currently undergoing a radical restructuring that will see it either sell or demerge both its platinum and steelmaking operations and De Beers, its diamond business. By the end of the year, the company will be focusing on copper and ore. The proposal was made in May, as part of ‘s defence against BHP’s £39 billion bid to take over the company.

It said that the break-up of this 107-year old group is on schedule, and the sale of its Australian coal division should be announced in the next few months. The final round bids are currently being evaluated. Wanblad said that the sales process had been disrupted during the summer by an incident at the Grosvenor Mine, which was likely to have impacted the price.

The third quarter saw a disappointing performance for the copper division, which was also impacted by the weaker performance of De Beers. Production fell 181,000 tonnes or 13 percent, due to maintenance work at the Los Bronces Mine in Chile, and the lower grades and recoveries suffered by Quellaveco, in Peru. The average realized price for copper, which is seen as a key metal in the energy transition, was 9 per cent higher at $4.21 a pound during the third quarter.

The platinum group metals markets showed signs of stabilization, so the guidance for Amplats’ refined production was increased to 3.7 to 3.9 million from 3.3-3.7 million this year. Amplats is one of Anglo’s weakest businesses, along with De Beers. Prices for platinum metals used in catalytic convertors have fallen as car production has slowed.

The company stated that the spinout of its business, which has already been listed in Johannesburg, will be completed by mid-next year.

The iron ore production was also higher than analysts expected, increasing to 15,7 million tonnes from 15,4 million tonnes one year ago.

The share price closed at £23.91, up 67p or 2.9%.

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