1M Cts. of Rough Fail to Sell at Closed Botswana Tender – Reports

Botswana’s state diamond trader held an ad-hoc tender of about 1 million carats in rough to help raise revenue for the country, but none of the stones sold.

Okavango Diamond Company (ODC), which is allocated 30% of rough from Debswana, a joint venture between Botswana and De Beers, put on a “closed” tender last week, a deviation from its usual scheduled auctions, according to a Bloomberg report. The government was using the auction as an attempt to raise much-needed money for the country, which is experiencing an economic crisis due to the challenging diamond market. Diamonds account for 80% of the country’s export sales and about a third of government revenue, according to the report.

However, none of the rough on offer sold, as the goods didn’t meet their reserve prices. ODC refused to sell at rates that would have a “negative impact on the market,” ODC spokesperson Dennis Tlaang told Bloomberg.

The diamond market was already weak due to an economic slowdown, a poor job market, lack of demand in China and rising competition from lab-grown stones. The recent spate of US tariffs on imports to the country, particularly the 50% levy on goods from India, which manufactures 90% of the world’s rough, have further affected sales.

Tlaang expects renewed interest for its rough at future auctions, he stated.

Image: Rough diamonds. (Shutterstock)