The miner said it would examine De Beers’s value in light of sluggish demand for diamonds as it seeks to exit the business.

Mining giant Anglo American has cut forecasts for its rough diamond output over the next two years, as demand for the stones continues to wane.

Anglo American, the firm behind North Yorkshire’s Woodsmith mining project, has said that it expects earnings in its diamond mining division to be “marginally negative” after a drop in demand in the Chinese diamond market.

Anglo American Plc expects to take a writedown on its De Beers operations, as plunging diamond sales prompt output cuts and complicate its plan to exit the business.Most Read from BloombergCitadel to

Anglo American expects to book an impairment this year for its De Beers diamond business due to weak market conditions. This announcement comes as the company moves forward with plans to either spin off or sell its diamond business,

The London-listed miner announced Thursday that it will review De Beers’s value as it looks to exit the business, citing persistently weak diamond demand. Last year, Anglo reduced De Beers’s book value by $1.6 billion to $7.6 billion.