Persistent weak demand for diamonds has prompted Anglo American to consider a full exit from the diamond sector. The company previously wrote down the value of De Beers by $1.6 billion in 2024, bringing it down to $7.6 billion.

De Beers reported a 26% drop in rough diamond production in 2024, producing just 5.8 million carats compared to the previous year. For 2025, the production forecast has been revised to between 20 and 23 million carats, a significant reduction from the previous estimate of 30 to 33 million carats. Anglo American expects the diamond division to post a marginal loss for 2024.

The decision to potentially divest De Beers follows Anglo’s broader portfolio simplification strategy. This initiative gained momentum after a tentative takeover proposal from BHP (ASX: BHP). CEO Duncan Wanblad stated earlier this week that the company aims to complete its exit from De Beers by the end of 2025.

In November, Anglo American secured agreements to sell its steelmaking coal business for up to $4.9 billion. The transaction with Peabody is expected to be finalized by the third quarter of 2025. Additionally, the company successfully conducted a second bookbuild offering of Anglo American Platinum shares.

On the production front, Anglo American reported that all its business segments met their full-year production guidance for 2024. Copper production totaled 773,000 tonnes, aligning with the projected range of 730,000 to 790,000 tonnes. The Quellaveco mine in Peru delivered its strongest quarterly output in Q4.

Looking ahead, the company reaffirmed its copper production guidance, projecting growth in 2026 driven by higher grades in Chile. "We are positioning the copper business for future growth through the resumption of operations at the smaller Los Bronces plant and debottlenecking initiatives at Collahuasi," said Wanblad.

Anglo’s Minas-Rio iron ore operation in Brazil achieved a record output of 25 million tonnes, contributing to the company’s total iron ore production of 60.8 million tonnes in 2024.

Despite challenges in diamond sales and weaker pricing for both iron ore and copper, Anglo American shares rose more than 5% in London trading following the announcement. The company currently holds a market capitalization of £32.9 billion ($40.9 billion).