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    Anglo American’s $3.7B De Beers loss: portfolio shift and capex signals for mine planners

    February 20, 2026|

    Reviewed by Tom Sullivan

    Anglo American’s $3.7B De Beers loss: portfolio shift and capex signals for mine planners

    First reported on MINING.com

    30 Second Briefing

    Anglo American reported a $3.7 billion loss after a further $2.3 billion writedown on De Beers, cutting the diamond unit’s carrying value to $2.3 billion and taking total impairments to $6.8 billion in 2025, while trimming its dividend to $0.23 per share and reducing net debt to $8.6 billion. Copper and iron ore, including growth via the Teck Resources merger and assets such as Quebrada Blanca near Collahuasi, remain the core earnings focus as Anglo advances plans to exit diamonds, coal and platinum. Anglo is also in advanced talks with Mitsubishi Corp on partnering at the Woodsmith polyhalite project in northern England, which hosts the world’s largest known polyhalite deposit marketed as POLY4 and is currently on care and maintenance.

    Technical Brief

    • De Beers has suffered three consecutive annual production declines and has cut its 2026 output guidance.
    • Rough diamond supply is currently “plentiful”, with weak demand and high inventories depressing achieved prices and margins.
    • Botswana holds 15% of De Beers and supplies about 70% of its annual rough diamond output.
    • Botswana has indicated interest in increasing its De Beers equity stake during Anglo’s divestment process.
    • Angola is targeting a 20–30% De Beers stake and is coordinating with other African producers.
    • Two flagship Anglo coal mines are currently halted due to fires, constraining coal revenue and mine plans.
    • The Teck merger adds the Quebrada Blanca copper operation in northern Chile, geographically close to Anglo’s Collahuasi mine.

    Our Take

    With $6.8 billion of De Beers writedowns now booked against a remaining $2.3 billion carrying value, Anglo American’s diamond exposure is becoming small relative to its copper and iron ore earnings base that dominates our recent coverage, which likely strengthens the strategic case for a sale or demerger rather than further capital allocation into diamonds.

    The focus on the Woodsmith polyhalite project in northern England gives Anglo American a rare multi‑nutrient fertiliser exposure (potassium, calcium, magnesium, sulphur) in our database, which could diversify cash flow away from more cyclical coal and diamond markets but also locks in high upfront capex at a time when net debt stands at $8.6 billion.

    Angola’s stated ambition to move to a 20–30% stake in De Beers, alongside Botswana’s existing 15% holding and 70% share of rough diamond output, suggests any M&A outcome around De Beers will be heavily shaped by African government leverage, complicating deal structures compared with the more straightforward copper portfolio moves seen in BHP–Teck Resources coverage in Chile and Canada.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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