De Beers, the iconic diamond mining company, has reported a staggering $245 million loss for the first half of 2025. This comes amid a challenging period for the natural diamond industry, which continues to struggle with weakening demand, falling prices, and increasing pressure from lab-grown alternatives.

Despite the financial setback, De Beers has announced an ambitious production recovery plan. The company aims to ramp up its output to between 26 and 29 million carats in 2026, with a further increase to 28 to 31 million carats projected for 2027. These targets signal a determined push to restore investor confidence and secure its long-term position in the global market.

Meanwhile, the government of Botswana — which currently owns a 15% stake in De Beers — has expressed growing concern over the company’s performance and is reportedly considering acquiring a larger share, potentially even full ownership. However, analysts remain skeptical about whether the country has sufficient financial resources to complete such a deal. Still, Botswana's pressure could have significant influence on the company’s future direction.

This development comes at a time when De Beers’ parent company, Anglo American, is undergoing its own internal restructuring, prompting speculation about a potential sale or spin-off of the diamond unit altogether.

The months ahead will be critical for De Beers and the broader diamond industry. As consumer preferences shift and lab-grown diamonds gain acceptance, traditional miners face a tough road ahead. Whether De Beers can successfully reboot its operations and maintain its dominance in a rapidly evolving market remains to be seen.