Okavango to Hold Pilot Diamond Sale in Botswana
May 07, 13
(IDEX Online News) – Okavango Diamond Company (ODC) today (Tuesday) announced that it will hold a trial rough diamond sale in Gaborone from June 26 to test its online auction system ahead of a full launch of its commercial sales operations in September.
Toby Frears
ODC will invite approximately 50 companies to attend viewings of diamond lots in Gaborone before taking part in a live auction test. The company said these organizations have been carefully selected to represent a cross-section of the market, making them well placed to provide ODC with feedback on all aspects of the sale. The list of invitees will include all companies in Botswana who hold a diamond manufacturing license.
“The pilot sale represents an important final step in ODC’s establishment. It will help us ensure that our systems are efficient and robust ahead of our full sales launch and underlines our commitment to delivering a customer focused sales model,” said ODC managing director Toby Frears.
When full sales commence, ODC’s auction events will be open to local and international diamond companies who will be able to gain access to the full range of Debswana’s diamonds at market-determined prices. The company will publish full details of how to register to participate in future sales in the coming weeks.
“ODC’s sales model has been designed to cater both for customers’ short- and long-term supply needs. In addition to regular auction sales, ODC plans to introduce fixed term supply contracts, although the details will only be finalized in early 2014,” added Frears.
ODC’s auction system has been developed by Power Auctions LLC, a world leader in on-line auction design, whose clients have included BHP Billiton and the governments of Australia, Canada, the UK and the US.
ODC was created to provide Botswana with its own sustainable, commercial diamond sales channel. The company was established following the renewal of the Debswana Sales Agreement between the Botswana Government and De Beers. The agreement provides for the government to purchase and sell 12 percent of Debswana’s production in 2013, rising to 15 percent by 2016.