Anglo American is discussing a deal worth about $1-billion to sell its De Beers diamond business, just a fraction of what the one-time diamond monopoly was once worth.

Anglo has been looking to sell De Beers since it fended off an almost $50-billion approach from BHP Group in early 2024, yet its disposal process has been stymied by a crisis in the diamond market. Anglo has so far taken three impairments on De Beers in just three years, lowering its carrying value for the unit to $2.3-billion in February.

Earlier this month, it picked a consortium led by former De Beers CEO Gareth Penny as the preferred bidder.

The current deal structure envisages Global Diamond Consortium — a group led by Penny and including Namibia, Angola and some of the world’s biggest diamond traders — paying about $1-billion for Anglo’s 85% stake in De Beers, according to people familiar with the situation. About $750-million will be paid upfront, with a further $250-million paid later, the people said.

There will also be additional payments based on the performance of the business after the sale completes, some of the people said, asking not to be identified because the matter is private.

The move to sell De Beers comes in the midst of one of the diamond industry’s deepest and most prolonged crises that’s seen gem prices plunge. After a period of bumper sales during the pandemic, the industry was already weakening when it was hit by a collapse in Chinese luxury spending. The rising popularity of synthetic stones, trade tensions and sudden geopolitical shifts have added even more pain.

Spokespeople for Anglo and Penny’s consortium declined to comment.

The company took control of De Beers in 2011, buying out the Oppenheimer family in a deal that valued the business at almost $13-billion. De Beers was valued at more than $18-billion in 2001, when Anglo and the Oppenheimers took the diamond giant private.

GDC would also pump about $500-million into De Beers as part of the deal with Anglo, the people said. Still, the discussions are not complete and there is no guarantee a deal will be completed or agreed on these terms, some of the people said.

The buying consortium will also have to agree a deal with Botswana. The African country — which vies with Russia as the biggest diamond producer — owns a 15% stake in De Beers. Botswana also holds a 50% interest in Debswana, its mining joint venture with De Beers that produces most of the country’s diamonds.

Botswana is seeking to increase its stake in the company. While President Duma Boko said last year that the country wants majority control of De Beers, the nation may be satisfied with a bigger minority holding, people familiar with the government’s thinking have previously told Bloomberg.

De Beers produces 70% of its diamonds in Botswana, but it also has mines in Canada, Namibia and South Africa.

Penny ran De Beers for five years, before leaving the company in 2010, when it was controlled by the Oppenheimer family. Penny led De Beers through the global financial crisis that slashed diamond prices, forcing him to idle mines and restore finances with a $1-billion rights offer.

GDC’s bid is based around focusing De Beers back on the mining and marketing of natural gems.