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Okavango to Introduce Contract Sales in 2014
Nov 20, 2013 10:49 AM
By Avi Krawitz, Sonya Burlan
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RAPAPORT... Okavango Diamond Company is planning to introduce fixed-term supply contracts in 2014, Toby Frears, the company's managing director, said in Israel on Wednesday.
“Until now, we’ve been focused on gaining knowledge about our clientele and giving them confidence in us,” he said in a presentation at the Israel Diamond Exchange (IDE). "As that develops we will expand our sales channels to include long term contracts."
The company currently sells via 10 online spot auctions per year, having launched commercial sales in October. The goods are available for viewing in Gaborone for two weeks before the auction closes and bidding is conducted online via the company’s website.
Frears (pictured) reported that Okavango sells about 250,000 carats of rough per auction with projected annual sales of about $400 million. He said that contract sales will run alongside the company’s auction sales, but didn't confirm how much would be sold by either method.
The company receives 12 percent of rough supply from Debswana, the mining joint venture between De Beers and the Botswana government, which is expected to increase to 15 percent by 2016.
Okavango's management is visiting the various trading centers to invite customers to participate in its sales. Representatives from the Israeli industry requested that the company hold rough auctions in Israel.
Frears implied that offsite sales are likely not to happen, stressing that the company’s goal is to develop Botswana into a major rough trading hub.
Okavango’s next sale is scheduled for the end of January 2014.
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Tags:
Avi Krawitz, Avi Krawitz, Sonya Burlan, Sonya Burlan
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