Botswana says sale of mined diamonds was not an 'emergency' auction

Botswana said an unprecedented ad-hoc diamond auction late last month, in which it did not sell any gems because the reserve price was not met, was not an “emergency sale”.

State-owned dealer Okavango Diamond Co. had offered about 1 million carats of rough stones in a “closed” tender on September 25. Bloomberg reported at the time that the goal had been to increase revenue for the government, whose economy has suffered a slump in the global gem market.

Diamond World is grappling with one of its worst recessions in decades, amid a drop in Chinese demand and stiff competition from lab-grown stones, while US tariffs have sown more uncertainty. Botswana is particularly feeling the pinch: diamonds account for about 80% of its export sales and about a third of government revenue.

On Monday, ODC said the auction was not an emergency sale and was planned in advance. While it said 95% of companies registered for the tender submitted competitive bids, it made a “deliberate and prudent decision to retain certain assets.”

“Short-term asset retention ensures better outcomes for the market,” ODC managing director Mmetla Masire said in a statement.

“We will not join the race to the bottom on prices, our focus is on protecting the integrity and lasting value of Botswana diamonds.”