Anglo American studies drop in copper output and warns of additional losses in De Beers diamond enterprise

Anglo American reported a drop in copper production while warning of further losses at De Beers as diamond prices languish.

The miner reported a 10 per cent fall in copper production last year to 695,000 metric tons, at the lower end of its guidance.

It also cut its guidance for 2026, from between 760,000 and 820,000 tons to between 700,000 and 760,000 tons, but maintained expectations for 2027 and 2028.

It raised its iron ore production guidance to 55,000-59,000 tons from 54,000-58,000 tons.

Anglo American has shifted its focus to copper and iron ore production while looking to sell its diamond business De Beers, and its metallurgical coal and nickel assets, as it completes its $53billion merger with Canada’s Teck Resources.

Anglo warned of a further De Beers writedown as it looks to sell the unit

The restructuring came after a hostile takeover bid by rival BHP.

The miner warned De Beers was likely to post a loss in 2025 and was ‘assessing the impact of diamond market conditions, which could potentially lead to an impairment at the full year results.’

Last year, it booked a $2.9billion impairment charge on the diamond business following a $1.6billion writedown.

Anglo said its diamond production fell 12 per cent to 21.7million carats last year, and cut its forecast for 2026 to between 21million and 26million crats, from 26million to 29million previously.

While gold and silver prices have rallied to record highs, diamond prices have suffered a prolonged slump, reaching their lowest point in decades last year.

There has been lacklustre consumer demand and the growth in cheaper lab-grown diamonds has also contributed to the decline.

That has not stopped investors piling into Anglo American, though. While shares slipped 1 per cent this morning, they are up over 50 per cent over the past year.