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.
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 include all 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.
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.
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
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.