Botswana has been offered a new lease of life as leading diamond company, De Beers has announced that it will be shutting down its Lab-Grown Diamond (LGD) jewellery brand, Lightbox.
Recently, both De Beers and Botswana have aggressively spoken on the need for marketing and selling of natural gems which have since staled in recent years. As a result, the closure of Lightbox presents an opportunity for Botswana, which has always maintained a dim view for synthetics regarding them as a threat in the diamond market. To counter this threat, Botswana, a leading diamond producer by value, endeavoured to bolster natural diamonds marketing and entering strategic partnerships with partners in championing natural diamonds.
According to the World Diamond Council, diamonds account for 85 percent of Botswana’s export income. Similarly, WDC notes that the industry provides 4 percent of direct employment and stands at around 30 percent of national GDP. The WDC data demonstrates the extent to which diamonds have remained pivotal as Botswana’s economic backbone.
Highlighting the enormity of the synthetic diamonds threat to natural diamonds, a research article in the International Journal of Research Publications and Reviews published by Dhruv Surana titled: “Lab-Grown vs. Natural Diamonds: A Market Disruption or an Ethical Evolution?” noted that the evolution of lab-grown diamonds challenged pricing, market share and dominance of natural gems. Surana stated: “Lab-grown diamonds are made using High Pressure High Temperature (HPHT) or Chemical Vapour Deposition (CVD) techniques. They are not cubic zirconia or moissanite, or any other synthetic diamonds but real diamonds, possessing the same optical and chemical characteristics as natural stones. Since their evolution in the market, LGDs have grown from a niche product to an affordable substitute for real diamonds now accounting for 2% of the global market with a 15% annual growth rate. With production costs in steady decline, LGDs are becoming more appealing to consumers. They are particularly favoured by young people, who value cost and environmental friendliness over luxury. In addition, large jewellery companies and luxury brands include LGDs in their range. So, the myth that diamonds are available only to the elite is broken, and almost everyone can afford a good stone.”
Consequently, due to the above, just like the rest of the world, synthetics posed an existential threat to Botswana diamonds.
The article further noted that global trends projected that LGDs were anticipated to increase in value from $1 billion in 2020 to $ 6 billion in 2026. The growth was anticipated to surpass $ 20 billion by 2035.
Botswana optimistic
Against this backdrop, Botswana remains optimistic as it monitors the markets for a rebound. The discontinuation of De Beers LGDs Lightbox company comes in the wake of the country’s signed agreement with the Group following the conclusion of negotiations announced on 3 February 2025.
The new agreement formally binds the two partners into a 10-year Sales Agreement (which may be extended by a further 5 years) and a 25-year extension of the Mining Licences (from 2029 through to 2054) for the 50:50 Debswana mining joint venture.
Both De Beers and the Botswana government deem the agreement as bearing potential for stability and rebuilding confidence in the diamond markets. This is over and above spearheading a new phase of sustainable economic development.
Demonstrating commitment to renewed working relations, recently, the CEO of Anglo-American, Duncan Wanbald paid a courtesy call on President Duma Boko to solidify relations as Botswana remains a key global diamond leader. Anglo holds 85% shareholding in the De Beers Group while the remaining 15% is held by the government of Botswana.
Addressing the media after the meeting, Minister of Minerals and Energy Bogolo Kenewendo stated that both the government and Anglo reaffirmed their commitment to ensuring the fulfilment of the sales agreement. Kenewendo noted that the meeting also emphasised on the commitment for the sale of natural diamonds globally. She added that Botswana fully aligned with the WDC statement, which Botswana supported which stated the need for a universal exception on natural diamonds regardless of whether they are polished or rough.
De Beers shifts to natural diamonds
In a statement released recently, De Beers reaffirmed its commitment to natural diamonds in the jewellery sector. The statement stated that as part of closure plans, De Beers was discussing the sale of assets including inventory with potential buyers.
The statement noted that, Lightbox, which was established in 2018, brought about LGDs as a peculiar product from natural diamonds. The business was launched with transparent linear pricing of $800 per carat, noted De Beers Group. However, the global mining giant noted that, even so, LGD prices in the jewellery sector fell by 90% at wholesale, tracking closer to a cost-plus model as they have diverged from natural diamond prices. This sharp price decline has a result made the Group reflect on the future hence its intentions to discontinue the Lightbox business, the statement reads.
The Group further noted that the closure of Lightbox aligns with its Origins strategy of May 2024 which seeks to focus on high-return activities and streamline the business. Further, it demonstrated its belief in rare, high-value natural jewellery compared to the low-cost, mass produced LGDs.
De Beers Group explained that during the process of closing Lightbox, it will hand in hand with employees, retail partners, suppliers, and other stakeholders to ensure a smooth process over the coming months. Therefore, the company assured customers of support for existing purchases, including warranties and after-sales services, during the closure process.
Al Cook, Chief Executive Officer of De Beers Group, said: “As we move towards becoming a standalone company, we continue to optimise our business, reduce costs and build a focused De Beers that is positioned for profitable growth.
“The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds. Lightbox has helped to highlight the fundamental differences in value between these two categories. Global competition continues to intensify with more low-cost lab-grown diamond production from China. In the US, supermarkets are driving down lab-grown diamond jewellery prices. Overall, we expect both the cost and price of lab-grown diamonds to fall further in the jewellery sector.
“The planned closure of Lightbox reflects our commitment to natural diamonds. We are also excited at the growing commercial potential for synthetic diamonds in the technology and industrial space.”
