At a meeting at the Israel Diamond Exchange (IDE), the CEO of Okavango Diamond Company (ODC), the Botswana government-owned rough diamond firm, laid out details of how to buy from the company
Officials from the the Botswana government-owned rough diamond firm, led by CEO Toby Frears, his deputy Marcus ter Haar, and sales manager Tim Lee, held a special meeting with members of the Israeli exchange yesterday (Wednesday).
During the meeting, ODC officials presented the process of becoming customers of the company. The meeting was attended by IDE President Shmuel Schnitzer, IDI Chairman Moti Ganz, President of the Israel Diamond Manufacturers Association, Bumi Traub, previous IDE President Yair Sahar, President of the IPSDE, Shlomo Eshed, members of the presidium and the management of the exchange, and hundreds of members of the IDE who filled the Cullinan restaurant to capacity.
The ODC has the right this year to sell 12% of the rough diamonds of Debswana, the country's largest rough diamond company, jointly owned by De Beers and the government of Botswana. By the year 2016 ODC is expected to sell 15% of Debswana's output. ODC's annual sales are expected to be about $400 million.
IDE President Shmuel Schnitzer, said: "Two weeks ago I visited Botswana, I met with Toby Frears and his team, and I invited them to Israel to explain the company's activities before the IDE members. During my visit I inspected the company's rough and I found it suitable for diamond companies in Israel. He said to the ODC team: "I believe that next year we will do much business together and that today's visit is the first of many."
IsDMA President Bumi Traub, said: "I thank Shmuel Schnitzer who initiated this meeting. ODC's sales process is very interesting to us and I believe we will do business in the future."
IDI Chairman Moti Ganz said: "Okavango has the right to sell 12% this year of Botswana's rough. The company has a wide range of rough in all categories and I hope that over time, they will increase the proportion of Israeli diamond merchants among the company's clientele, and that we can view the goods here in Israel."
Deputy Diamond Controller Sigal Szydlowski said that Israel will provide all the necessary assistance to the success of the company's operations in Israel.
Toby Frears acknowledged the support, assistance and cordial hospitality. He gave a review of the company's structure, operation, ownership structure and its position in the production chain, and the sales process of the company's rough diamonds. "We want to create as diverse a customer base as possible, and to offer our clients access to $400 million of rough annually in a broad range of categories.
"The process of selling the rough is via auctions. We place great emphasis on transparency and building trust with our customers to meet all their needs. In 2014 we will begin offering customers rough supply contracts," he added.
Sales Manager Tim Lee explained: "A sale is made through a reliable and secure Internet platform. Bids are submitted in one of two ways: bids during live rounds in real time, with the price rising between rounds (spot auction), or a preset bid as in a tender. Participants choosing the first option will receive information about the amount of demand and prices at the end of each round. The winner is the one who offered the highest bid, but he pays the price offered under the bid that was second to his."
"ODC will hold 10 sales a year totaling 250,000 carats each. Items for sale are classified according to size, color and quality. Participants can inspect the rough beforehand. Available to the participants will be well equipped rooms for inspecting the goods in a secure area in the company's premises in Gaborone. After viewing, the online sale is carried out," he said.
Marcus ter Haar gave a review of the options for traveling to Botswana, receiving a rough diamond trading license and other issues. "Botswana is not the most accessible place in the world and there is no direct flight from Tel Aviv to Gaborone. However, there are eight connecting flights every day from Johannesburg."
"To view the rough, you do not need a license, but companies and diamond merchants who buy rough need to get a license at a cost of $60. It is possible to pay for goods in U.S. dollars. Upon completion of the acquisition, the ODC will deal with the issuance of Kimberley Process certificates, and the issue of transporting the goods with shipping companies. Rough bought from ODC is exempt from VAT and export duties. The next sale will be held in late January, 2014. I invite you all to participate in it," he said.
Schnitzer said: "The ODC's sales are aimed at large, medium-size and small companies. ODC welcomes buyers of all sizes."
Online registration for sales can be carried out via a downloadable form from the following link: http://www.odc.co.bw/wp/wp-content/uploads/Registration-Form.doc
