Okavango Sales Fall in First Half

RAPAPORT... Sales at Okavango Diamond Company (ODC) dropped 16% to $260 millionin the first half of 2018 due to a limited supply of rough, Reuters reported. Sales volume declined 1.7% to 1.8 million carats, theBotswana-based trading company added in a statement to Rapaport NewsMonday. The state-owned company has access to 15% of the production fromDebswana, the government's joint venture with De Beers. ODC was not "able to offer larger volumes [of] goods to our customers compared to the sameperiod in 2017," said Marcus ter Haar, the company's managing director. Major mining companies sold relatively low rough volumes inthe first quarter, leading to greater competition for goods from companiesin the midstream, ter Haar added. At the same time, "buoyant" diamond sales inthe Far East and a positive US retail market drove demand for rough during theperiod, the executive said. ODC held five spot auctions during the first half of theyear, representing the majority of its sales. About 30% of sales by volume werefrom term auctions, an alternative selling method the company introduced lastyear that enables clients to bid for consistent supply over three regular salescycles. ODC subsequently extended that program, offering goods over aseven-cycle contract period rather than only three.