ODC holds first diamond tender
Boitshepo Majube | Thursday October 10, 2013 21:52
The diamonds in yesterday's auction have been available for viewing by potential buyers for the past five weeks.
Deputy Managing Director of ODC Marcus Ter Haar says the results of the auction will be known today (Thursday) when the auction is completed.
'We would be able to verify the sales tomorrow when the auction is done,' Ter Haar told Mmegi Business yesterday. ODC was established March 2012 as a key part of Botswana's plans to establish diamond trading and other diversified diamond-related activities in the country. The company evolved from the 2011 agreement between De Beers and the government to make a portion of Debswana's production available for sale locally, independent of the DTC.
According to the agreement, government's share of Debswana's production, 10% of which was available retroactively from the beginning of 2011, will increase by 1 percent each year until it reaches 15% in 2016.
As a result, ODC is this year entitled to auction up to 12% of Debswanaâ targeted 2013 production of 20 million carats.
ODC chosen auction provider, Power Auctions from the US, is a recognised world leader in the design and implementation of online auctions and has been instrumental in ensuring that ODC has one of the most commercial and transparent sales platforms in the market.
At the launch of ODC, the board of the company said the pilot initiative provided the team with the opportunity to test ODC's core systems and processes ahead of the launch and to gain valuable learnings and feedback from customers.
'This experience has been used to make refinements where necessary,' ODC Chairman Jacob Thamage said, adding that they are looking forward to opening their doors to the market. Thamage said they would hold an online auction, as they offer the best fit for ODC and its customers.
'Auctions by their nature are transparent and fair mechanisms and deliver market prices through a very efficient and competitive sales process,' he said.
Thamage explained that auctions promote broad participation and will bring traffic and trade into Botswana as customers from around the world come to the viewings every five weeks.
ODC targets to auction up to $400 million (P3.4 billion) of diamonds a year.