Okavango, Botswana’s state-owned diamond company, failed to sell a single stone in an unprecedented “emergency” tender of 1m carats last Thursday 25 September.
The auction was aimed at raising revenue for the government, which had been severely hit by the slump in demand for natural diamonds, but buyers weren’t prepared to pay the reserve prices.
Okavango Diamond Company (ODC) has canceled a number of tenders since November 2024 because of weak demand. It had planned to hold two further ad hoc tenders by the end of this year, but may now have to reconsider.
ODC usually holds about 10 scheduled online spot auctions annually for registered buyers. Last week’s ad hoc tender was a marked departure from the norm.
ODC spokesman Dennis Tlaang said ahead of the tender that it wouldn’t be selling at prices that would have “a negative impact on the market”.
The company now sells 30 per cent of the rough output from Debswana, the 50/50 joint venture between the Botswana government and De Beers.
Source: IDEX