Debmarine Namibia has announced plans to reduce its diamond production by 5% in 2025, setting a target of 1.5 million carats, as the global diamond industry continues to experience a downturn in demand.
This planned reduction follows a 13% year-on-year cut from 2023 to 2024, with the marine diamond miner having produced 1.625 million carats in 2024.
Debmarine Namibia Chief Executive Officer Willy Mertens attributed the cuts to weakening international retail demand for natural diamonds, which fell by 3.5% in 2024, largely driven by a sharp decline in the Chinese market.
“The global retail demand for natural diamonds dropped by 3.5% in 2024 more significantly as a result of the 21% decline in China, the third year in a row we have seen a double-digit decline in the demand for natural diamonds,” said Mertens, speaking to Namibia Mining & Energy.
“This has caused a substantial decline in the revenue earnings by 38%. As a result, the business response to the low demand for natural diamonds has been to reduce production.”
He confirmed that production would be adjusted downward accordingly.
“We have therefore reduced our production by 13% year-on-year from 2023 and possibly another 5% to 2025 – therefore aiming to produce 1.5 million carats in 2025, in comparison to the 1.625 million carats produced in 2024,” he stated.
Despite the financial challenges, Mertens noted that Debmarine Namibia remains financially resilient and well-positioned to capitalise on future opportunities.
“However, despite the subdued financial performance in the past two years, the company’s balance sheet remains robust and ready for future investment when the market recovers,” he said.
Looking ahead, Mertens acknowledged a mixed global outlook for the natural diamond market in 2025, citing continued uncertainty in China and the impact of US tariffs.
“The global economic growth outlook looks stable for the diamond industry, with some economies (i.e., Indian) expected to see growth pick up in 2025,” he said.
“The industry is expected to face a challenging outlook in terms of demand for natural diamonds in 2025. The US tariffs are driving uncertainty, whilst the outlook for China remains weak for the near and medium terms.”
He stressed the need for agility in responding to market conditions. “These conditions require proactive and decisive measures to develop a strategic response and to streamline the operations to navigate the natural diamond downturn,” Mertens said.
