Plans for parent company Anglo American to sell the diamond producer have been further complicated after reports the company is holding more than $USD2 billion ($AUD3.21 billion) in unsold diamonds.
London’s Financial Times has reported that De Beers is holding its largest stockpile since the Global Financial Crisis of 2008. CEO Al Cook reportedly told the publication the past year was ‘bad’ for rough sales.
It was revealed that De Beers was available for purchase in April. Australia’s BHP Group Limited tendered three proposals; however, they were rejected.
“De Beers didn't immediately respond to a query for additional details on its inventory, including how much it was in prior years,” writes Jason Ma for Fortune.
“The company has been grappling with multiple headwinds in recent years. China's slumping economy has been a major drag on the luxury sector, including diamonds. Gen Z's preference for less expensive lab-grown diamonds has hit demand for natural stones.
He continued: “And the knock-on effects of COVID-19 were still reverberating as marriages only returned to pre-pandemic levels earlier this year.”
In October, Anglo American CEO Duncan Wanbald said the company remains optimistic about the prospects of a sale.
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