ODC, whose allocation in the production of Debswana its 50-50 joint venture with De Beers was increased to 30% from 25% under the new deal, aims to sell about 40% of its supply through contracts, with the balance sold through auctions, strategic partners and Botswana-based companies.

Currently, ODC's sales are predominantly through online auctions, typically held 10 times a year. Like De Beers, which sells about 90% of its diamonds through contracts to handpicked buyers, also called sightholders, ODC will now also sell to contracted buyers.

"The previous deal had a clause which prevented us from directly competing with De Beers on contract sales," Masire told Reuters in an interview

The process of selecting buyers has started, with contracts expected to be issued by September, he added.

Under the new ten-year deal with De Beers signed in February, ODC's allocation of Debswana output will reach 40% at the end of the agreement, with the possibility of a further increase to 50% during a proposed five-year extension period.

The global diamond market is currently going through a downturn marked by declining demand and a supply glut, but Masire said there were signs of "a slow but sustained recovery".

"The global market is still fragile, and the U.S. tariffs have added uncertainty, but indications are that demand is improving as China looks like it's starting to pick up and India as well,” Masire said.

ODC's 2024 revenues were about 60% of the previous year's levels due to the downturn

--Reuters--