HomeDiamonds & GemstonesTanzanite one slumps after ban

Tanzanite one slumps after ban

Tanzanite One’s
Merelani mine
in Tanzania
London, England — MININGREVIEW.COM — 10 June 2010 – Tanzanite One Limited “’ the world’s largest tanzanite miner “’ fell the most in 11 months in London, after saying it is in talks with the government of Tanzania about a ban on uncut exports of the blue gemstone.
“The Tanzanian government has expressed a wish for more cutting to occur in Tanzania,” the company said in a stock exchange statement here. Tanzanite One, based in Hamilton, Bermuda, has been given an unspecified grace period to draw up plans to comply with the regulations, it added.

Shares in Tanzanite One fell 9.8% to close at 9.25 pence “’ the biggest intra-day drop since 6 July 2009 “’ giving the company a market value of US$15.3 million (R115 million). Shares in the group have fallen 40% during the last 12 months.

“Tanzania, the world’s only source of tanzanite, will create jobs and increase earnings by banning raw tanzanite shipments,” minerals and energy minister William Ngeleja said in an interview with Bloomberg News.

Tanzanite, which is 1 000 times more rare than diamonds, is mined from the world’s only known deposit, at the foot of Mount Kilimanjaro, Africa’s tallest peak. Sales of the stone are under pressure as economic uncertainty dampens demand from jewellers and consumers of luxury goods in the United States, the largest buyer.

“The ban is on rough stone exports of more than 1 gram,” Tanzanite One said. “Given that “a large portion” of the company’s production is above that weight, Tanzanite One is preparing plans to boost the proportion of cutting its does locally. This may include selling raw stones into the local market, it added.