Okavango to Hold First Contract Sale
October 21, 25
(IDEX Online) - Botswana's state-owned Okavango Diamond Company (ODC) is to hold its first contract sale direct to buyers next month.
It marks a significant shift away from online auctions, which currently represent around 90 per cent of its sales, towards a process that is much like the De Beers' sights.
Contract sales were prohibited by previous long-term agreements between De Beers and the Botswana government, but are now permitted under a new 10-year deal that was finally signed in February.
ODC will hold its first two pilot sales, in November and December, before scaling up the operation early in 2026.
"This initiative is designed to provide greater supply security for customers while supporting ODC's strategic growth," the company said.
ODC managing director Mmetla Masire says the company expects to sell 40 per cent of its rough production through the contract sales.
The remainder will be sold via auctions, strategic partnerships, and Botswana-based companies.
Last month ODC failed to sell a single stone in an unprecedented ad hoc tender of 1m carats. It has also canceled a number of tenders since November 2024 because of weak demand.