So here's a thing about diamonds: they're supposed to be forever. The business of selling them, however, is looking a lot more temporary for Anglo American plc (AAUKF). On Friday, the mining giant posted a $3.7 billion loss for the year. The main culprit? A $2.3 billion writedown on its famous De Beers diamonds business. That's the sound of a crown jewel losing its shine in a very expensive way.

This isn't a one-time stumble. This latest impairment brings the total writedowns on De Beers to a staggering $6.8 billion over the past year. Think of it as a $6.8 billion vote of no confidence in the near-term future of the diamond trade. The company's underlying operations actually earned 2% more, but that non-cash charge—the accounting equivalent of saying "this asset isn't worth what we thought"—was enough to push the whole group deep into the red. And when a company goes into the red, shareholders often see less green.

Which brings us to the dividend. Anglo declared a payout of 23 cents per share, roughly $200 million in total. That's down a brutal 64% from the 64 cents per share, or about $800 million, it paid out a year ago. Management says the cut reflects weaker diamond prices and a desire to keep the balance sheet strong while they reshape the entire company. Net debt did fall to $8.6 billion, but the dividend slash is the clearest signal of just how much De Beers is dragging down the whole operation.

The Great Unshining

Anglo's diamond headache has been building for a while. The company really kicked its strategic overhaul into high gear after fending off a massive $49 billion takeover bid from BHP Group Ltd. (BHP) nearly two years ago. The plan? Simplify. Get out of diamonds, coal, and platinum, and double down on the stuff the future supposedly runs on: copper and iron ore.

The centerpiece of that pivot is a huge, transformative merger with Teck Resources Ltd. (TECK). Shareholders have already given it the thumbs-up. If it gets the final regulatory nods, the deal will create one of the world's largest copper producers, combining Teck's major assets like the Quebrada Blanca operation in Chile with Anglo's own portfolio. The future, in this vision, is metallic and reddish-brown, not clear and sparkly.

Who Wants a Piece of a Struggling Monopoly?

That leaves De Beers, the former star of the show, still on the books but under intense pressure. Production has fallen for three years straight, and the company has even cut its output forecast for 2026. The market, in a word, is flooded.

"There is at the moment a plentiful supply of rough diamonds in the market," CEO Duncan Wanblad said, according to reports. He pointed to a market swamped with inventory, softer demand for luxury goods, and the rapid rise of lab-grown stones as the main challenges.

So, Anglo is selling. The process is reportedly at an advanced stage, with final binding bids expected this year. But this isn't your typical corporate garage sale. The likely buyers aren't private equity firms or rival miners; they're nations. Botswana, which already owns 15% of De Beers and supplies about 70% of its rough diamonds, has signaled it wants to increase its stake. Angola is also in the mix, seeking a significant position.

"Taking the majority stake within luxury commodities is very dangerous because it depends on the market," Paulo Tanganha, Angola's national director of mineral resources, told Reuters. "So to de-risk that, we have to have a portion that is sustainable for our economy. And that range (is) between 20% and 30%, we are happy about that." He added that Angola and neighboring producers were holding closed-door talks to find a common position.

It's a fascinating twist. As a publicly-traded miner decides diamonds are too volatile and niche for its portfolio, national governments are looking at the same business and seeing a strategic asset worth controlling, even at a discount. For Anglo, the goal is clear: turn the page on diamonds, finalize the copper-focused future with Teck, and hope that this $6.8 billion lesson is finally over.