Okavango Diamond Company Cancels December Sale

Okavango Diamond Company (ODC), Botswana’s state-owned rough trader, has called off its second consecutive sale amid ongoing weakness in demand. 

The rough viewings scheduled for December 3 to 13 and the spot auction slated for December 16 will not take place, the parastatal told customers in an email Monday. This follows the cancellation of ODC’s November sale. 

The October auction will still occur, with viewings currently happening ahead of the sale on October 7.  

The company did not give clients a reason for the change, but apologized for the “inconvenience that this may cause,” according to the email, seen by Rapaport News.  

A note on ODC’s website says it will confirm auction dates “on a sale-by-sale basis” due, among other things, to “current market conditions.” The company made similar postponements last year when trading weakened. 

Several diamond miners have reduced their sales in response to an oversupply in the midstream. De Beers canceled its August sight, merging it with its October sale into a combined September trading session that began on Monday. 

Okavango has the right to sell 25% of rough from Debswana, the joint venture between the Botswana government and De Beers. This is poised to reach 30% and eventually up to 50% under De Beers’ new sales agreement with the southern African nation. 

ODC was not available for comment at press time. 

Image: Rough diamonds. (Shutterstock)