Anglo American Suffers Wider Losses Amidst Diamond Market Decline and Escalating Trade Disputes
Anglo American Shifts Focus, Pursues De Beers Divestment
Anglo American, a global mining company with significant interests in copper, iron ore, and crop nutrients, is currently in the second round of formal discussions for the divestment of De Beers, its diamond division [1]. The company is aiming for a trade sale within a timeline of six to nine months, potentially concluding by early 2026. However, if a trade sale does not materialize, Anglo is preparing for an initial public offering (IPO) in public markets, with a potential delay until early to mid-2026 [1][3].
The Botswana government, which holds a 15% stake in De Beers, is actively involved in these discussions due to its significant ownership and potential interest in increasing its share [1]. Potential exchanges for a De Beers IPO include the London Stock Exchange, Johannesburg Stock Exchange, and New York Stock Exchange [1][4].
The current weakness in diamond prices and Anglo American’s broader focus on copper as a core growth area are influencing this timeline and strategy [1][3]. This shift is reflected in the company's post-restructuring plans, where copper is expected to account for over 60% of Anglo American's group EBITDA [2].
However, the road to this divestment has not been without challenges. De Beers posted a US$189 million loss in the half-year period due to a prolonged downturn in global rough-diamond demand and competition from synthetic stones [5]. Over the past two years, Anglo American has recorded US$3.5 billion in impairments related to De Beers [5].
The company has also faced disruptions in its copper business due to the redirected metal away from traditional markets in Asia and Europe. A recent announcement from President Donald Trump spared refined copper imports from new tariffs but left semi-processed products exposed, causing a 18 percent drop in copper prices and dislocating demand patterns [6]. To mitigate these effects, Anglo American has increased its U.S. refined copper imports by 127 percent year-on-year in the first five months of 2025 [6].
In other developments, Anglo American has designated its steelmaking coal and nickel operations as discontinued [7]. Despite these changes, the company remains engaged with stakeholders on the future of its diamond mines, regardless of the group's eventual exit from the diamond sector.
Anglo American reported a net loss of US$1.9 billion for the first half of 2025, with underlying EBITDA falling 20 percent to US$3 billion [7]. The company's revenue dropped by 7 percent year-on-year to US$8.95 billion [5]. The CEO, Duncan Wanblad, addressed these challenges in the recent performance report [8].
In summary, Anglo American is pursuing a trade sale and an IPO for De Beers, with potential markets including London, Johannesburg, and New York. The company is also dealing with global trade disruptions and is focusing on copper, iron ore, and crop nutrients as its core growth areas.
References:
- Bloomberg
- Reuters
- Mining Weekly
- Business Day
- Financial Times
- CNBC
- MarketWatch
- Anglo American Performance Report
In light of Anglo American's shift towards copper as a core growth area and the ongoing divestment of De Beers, the company is considering potential finance opportunities for De Beers, including an Initial Public Offering (IPO) on stock exchanges like the London Stock Exchange, Johannesburg Stock Exchange, or New York Stock Exchange. Meanwhile, Anglo American continues to prioritize the energy sector by focusing on aluminum, copper, and renewable energy projects to sustain its growth in the wider industry.
