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Okavango to Hold First Diamond Auction in June
Group to Launch Full Sales in September
May 7, 2013 9:17 AM
By Avi Krawitz
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RAPAPORT... The Okavango Diamond Company will hold a pilot sale of rough diamonds on June 26. The sale is intended to test the company’s systems before it launches full, regular auctions in September.
Okavango will invite 50 companies to view the goods in Gaborone’s Diamond Technology Park before taking part in the live auction test. Among those invited will be all of the companies with diamond manufacturing license in Botswana. Jacob Thamage, Okavango’s chairman, told Rapaport News that participating companies were chosen to represent all manufacturing centers so that Okavango can receive diverse feedback from all sectors of the market.
“The pilot sale represents an important final step in Okavango’s establishment,” said Toby Frears, Okavango’s managing director. “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.”
Thamage explained that the company has developed an online auction system that draws from industry trends and best practices.
State-owned Okavango Diamond Company was established in 2011 to introduce rough diamond sales in Botswana independent of De Beers. The company is entitled to 12 percent of Debswana’s production in 2013, which will increase by 1 percent each year until the allocation stabilizes at 15 percent in 2016. Debswana is a joint venture between the Botswana government and De Beers.
Thamage said the company has not taken its full allocation for the pilot auction and that only a small amount of goods will be available.
When full sales commence in September, the auctions will be open to broad participation from local and international diamond companies that will be able to gain access to the full range of Debswana’s diamonds at market-determined prices, the company explained.
Frears explained that the sales model has been designed to care for both short term and long term supply needs. He added that the company intends to introduce fixed term supply contracts in its next phase of development, with those details expected to be finalized in early 2014.
Registration information for the September auctions will be published in the coming weeks.
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Tags:
Avi Krawitz, De Beers, Debswana, diamonds, Okavango Diamond Company, Rapaport, Toby Frears
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