ODC to Launch Contract Diamond Sales in Strategic Market Shift

ODC to Launch Contract Diamond Sales in Strategic Market Shift. The Okavango Diamond Company (ODC) is preparing to introduce long-term contract diamond sales next month, signaling a major evolution in Botswana’s diamond marketing landscape. The announcement was made by ODC Managing Director, Mmetla Masire, during the African Mining Summit in Gaborone on Wednesday.

Masire explained that the upcoming contract sales represent a pivotal step in diversifying ODC’s commercial strategy. “This initiative is designed to provide greater supply security for customers while supporting ODC’s strategic growth,” he said.

Unlike the traditional auction model, which has been ODC’s primary sales channel since its establishment, contract sales involve pre-agreed supply arrangements with selected clients. This structure promotes stability by minimizing the price volatility that often characterizes competitive auctions.

Masire confirmed that the company is in the final stages of stakeholder consultations before officially launching the model. “We are ready to make the announcement. What we are currently doing is final stakeholder engagement, and then we will make the announcement,” he stated.

The move to contract sales aligns ODC with global best practices in the diamond industry, offering both the company and its clients a more predictable and transparent trading environment. For manufacturers and long-term buyers, the model ensures consistent access to rough diamonds based on agreed volumes, quality specifications, and pricing mechanisms.

This approach is expected to particularly benefit industrial clients who require a steady and reliable supply for production planning. ODC will allocate about 40% of its total rough diamond output to contract sales, while continuing to use auctions and strategic partnerships for the remainder.