Exploration and production company Richland Resources reports that it will sell finished tanzanite stones into China, following a selling agreement with Chinese jeweller Chow Tai Seng.

The miner specialises in the mine-to-market supply channel for precious gemstones through its wholly owned subsidiary company, TanzaniteOne Mining.

The contract was awarded at the beginning of September after a long period of discussion on the material, implementation and marketing of the product, says Richland Resources head of research and market development Gavin Pearce.

Chow Tai Seng will sell cut-to-order stones through its 2 200 jewellery stores across China.

“The timing was right for the supply to the Chinese market as consumer tastes are leaning towards colour stones,” Pearce adds.

He notes that Chow Tai Seng will announce a launch event in the near future, after which the stones will be seen in its jewellery stores.

“Over the last five years, the coloured-stone segment of the retail market has shown the most growth. Tanzanite has gained popularity in China, owing to the alluring colour and genuine scarcity of the gem,” says Pearce.

Operating in Tanzania

Further, Richland Resources marketing manager Linda Kennedy notes that the company has a long-held strategy of aligning with downstream projects. “With TanziniteOne, we have developed specialised cutting facilities and improved Tanzanite cuts, which work in tandem with the ethical way in which the tanzanite is mined.”

Pearce states that continuity of supply is the main challenge for the company, adding that the coloured-gemstone market is experiencing good economic circumstances and demand is growing fast, compared with supply.

He explains that continuity of supply is an aspect that needs to be carefully managed. “The company’s mining licence agreement with the Tanzanian government, for mining block C, offers a platform to address issues and work towards stable supply,” he adds.

Although it offers a stable economic environment, Tanzania has also presented a number of challenges, including illegal mining. The company says its interim results, covering the first half of this year, have been severely affected by illegal underground mining activities from neighbouring mines.

Since the end of the reporting period, however, the company has, with the assistance of government, reclaimed control over the northern part of the licence area and mining is set to restart in this section in the final quarter of this year. Further, the removal of illegal miners in the southern part of the licence area is due to start shortly.

“Subsurface tunnelling into some of Richland’s most prospective mine areas and increasing violence led us to a situation where the company’s clear responsibility was to evacuate contested areas for workforce safety on and off the mine,” TanzaniteOne CEO Bernard Olivier states.

Meanwhile, in September, the company won a number of Presidential awards for corporate social responsibility and empowerment.

The company took first place in both the water and empowerment categories, and was second in the education and employment categories. The company also took second place overall in the medium-scale mineral projects category.

TanzaniteOne chairperson Ami Mpungwe notes that the awards are proof of TanzaniteOne’s continued engagement with and commitment to government and to the partner communities.

“This recognition is a further testimony to our all-round, high compliance levels and, therefore, a catalyst and inspiration to building further on the good work that President Jakaya Kikwete has acknowledged.

“We are lifting local communities out of poverty, in line with government’s aspirations of ‘maisha bora kwa kila Mtanzania’ (a better life for every Tanzanian),” he adds.