Okavango to Start Selling Rough at Contract Sales
June 09, 25
(IDEX Online) - Botswana's state-owned Okavango Diamond Company (ODC) is to start selling diamonds to selected buyers at contract sales that will be run along similar lines to De Beers' long-established sights.
ODC was prevented from holding such sales under the terms of previous sales agreements between De Beers and the Botswana government.
But a new sales deal, finally agreed after a number of delays in February of this year, gives ODC the freedom to move away from online auctions, which currently represent around 90 per cent of sales, and to hold contracted sales, which offer a more stable and predictable revenue stream.
It also means it can reach a wider array of buyers and potentially access new markets, boosting competitiveness on the global stage at a time of great market fragility.
The contract sales will begin in September and are expected to account for 40 per cent of ODC sales.
ODC managing director Mmetla Masire said the company had started selecting buyers.
The deal that allows contract sales to take place also increases ODC's share of rough diamonds produced by mining company Debswana, a 50-50 partnership between Botswana and De Beers.
And it makes provision for a $700m development fund to bolster the country's infrastructure and social programs.