ODC seals deal to add sparkle to diamonds
Mbongeni Mguni | Monday June 12, 2023 06:00
Rapaport’s RapNet trading platform boasts daily listings of 1.6 million valued at over $7.4 billion (P101bn), with 16,000 members in 97 countries. Rapaport also publishes the Rapaport Price List, the diamond industry’s standard for the pricing of diamonds. The GIA is the diamond industry’s main grading and certification institution for quality and type of stones.
Under the partnership, ODC’s diamonds will be assigned a 'green star' rating identifying their origin and potentially securing a premium in a market that is increasingly demanding diamond traceability and the highest ethical sourcing standards.
With diamonds from Russia continuing to trade in international markets despite sanctions together with other stones from countries with questionable ethical practices, consumers are increasingly sensitive to the origin of their diamond jewellery, particularly in the United States, which accounts for more than 50% of annual sales.
Speaking at the deal’s announcement here, ODC managing director, Mmetla Masire said the company’s diamonds were not aggregated or mixed with any other stones and were thus able to uniquely claim the premium that comes with Botswana’s vaunted position as an ethical producer. Botswana has become emblematic of the “diamonds for development” mantra, where revenues from the stones are used to uplift economies and citizens.
“When GIA and Rapaport approached us, we were very delighted because we are the largest supplier of Botswana-only diamonds and it makes sense because already we do send diamonds to GIA depending on the preference of the buyer,” he said. “So when this idea that the diamonds can then be certified and given a star rating, we felt it was a win-win situation where we would be able to put out our natural diamonds that come from an ethically sourced environment out into the market.”
He added: “We are possibly the only country in the world that is so dependent on diamonds. As a country we treasure them and we make sure the benefits we get from them are the ones that transform our country.”
Rapaport founder, Martin Rapaport, said just 800 of the 1.8 million diamonds listed on RapNet carry the green star rating. He said the ability to certify where a diamond originates from was increasingly critical for jewellers and the market and with Botswana, this traceability carried the country’s much-praised credentials.
“A lot of people make all kinds of claims about social responsibility but here we have an entire country that’s developing, and educating, taking care of health and bootstrapping up based on their diamond revenue,” he said. “So if you want to think about diamonds doing good and being proud of what you are selling in your store, having a Botswana diamond and being able to identify it, you know that this diamond came from Botswana and this diamond makes the world a better place.”
Rapaport continued: “Not only will we have diamonds on RapNet that have the green star, but you will also be able to see how they trade separately and better than those diamonds that don’t have the green star. “That premium price is going to drive the market. “The fact that retailers can make a higher price for diamonds from the green star, a known source, is fundamental for any jewellers who have access to RapNet.”
ODC’s supply comes from an entitlement it has to purchase up to 25% of Debswana’s production. In the 2022 calendar year, ODC raked in revenues of $1.1 billion (P15bn) – nearly 15% higher than in 2021 – off the sale of six million carats.