JOHANNESBURG (miningweekly.com) – Gemstones producer and developer Richland Resources on Thursday announced the completion of the sale of its Dubai marketing and rough gemstones sales office for $640 000 after costs and taxes.
The office, which was bought in 2007, had previously been central to the marketing and trading of rough stones by Richland but had now been deemed nonessential, as Richland was building alternative sales channels through its Tanzania cutting and polishing subsidiary Urafiki Gemstones, following the implementation of a ban on exporting rough tanzanite stones of more than 1 ct from the African country.
"Working with the Tanzania government, we have successfully established an in-country cutting and polishing operation that allows Richland to deliver beneficiated stones to its customers. Consequently, the marketing and sale of rough gemstones through the Dubai office has been wound down, with the company being able to realise cash from today's sale," Richland CEO Bernard Olivier said.
However, to ensure smooth continuity of the group's operations in Dubai, the group had entered into a six-month lease with the buyer for the rental of the Dubai office for $45 500, which had been paid in advance from the net sale proceeds.