Gemfields UK begins gem trading in Sri Lanka
After more than two years of vigorous groundwork and clearing all legal barriers while dispelling local concerns of engaging in gem mining, UK-based Gemfields Plc, one of the world’s largest coloured gem producers, is now ready to begin gem trading in Sri Lanka, officials of the company announced. Gemfields and East West Gem Investments (EWGI) established a gemstone trading company called Ratnapura Lanka Gemstones (Pvt) Ltd, a company approved by the Board of Investment of Sri Lanka (BOI Sri Lanka) in 2014. The company recently called for Expressions of Interest (EOI) from local mining companies with a view to setting up an organized supply chain in the renowned Sri Lankan gemstone industry.
While supporting the local industry through its technical capabilities, proprietary grading systems and marketing methodologies, Sri Lankan gems will be offered to international buyers via Gemfields’ proven auction platforms, once the supply chain is established, they disclosed.
This joint venture will add value to Sri Lankan gemstone production, growing the sector and contributing to economic development. Following the call for EOI from local mining companies and traders, appointments will be made after the completion of a due diligence appraisal with respect to generally accepted sustainability and operating criteria.
“Any gems that are purchased (from the local vendors) will then be processed, sorted, graded and offered to potential buyers via Gemfields’ proven auction platform,” Mohan Natarajan, Head of Business Development at Gemfields, told the Business Times in an e-mail communiqué sent while he was travelling to a remote part of Africa. The Business Times highlighted this gem trading venture in its November 30, 2014 edition following an interview with Mr. Natarajan, several hours before his departure to London after a brief visit to Sri Lanka. In his latest email communiqué, he revealed that Gemfields is already supplying emeralds, rubies and amethysts to the market in this manner, each of which has seen a quantum escalation in demand and achievable prices over the past few years and thereby ensuring that maximum benefits are returned to the relevant producing nations.
“We have also been keen to add sapphires to this list for some time now and are confident of the value we will provide to local gem sellers,” he added. The primary focus of the trading company Ratnapura Lanka Gemstones (Pvt) Ltd is, and has always been, the sourcing of sapphires from various sources within the local market, where they would be processed, sorted, graded, parcelled and offered to potential buyers via Gemfields’ highly acclaimed auction platforms, he explained. The UK company has acquired a 75 per cent stake in three EWGI subsidiaries, holding 16 exploration licences covering diverse minerals, for US$400 000. “Our current focus in Sri Lanka is on trading operation and understanding the geology through exploration. We have received a trading licence and are in the process of setting up operation very soon.
We are also forming a team to start the research process on the Sri Lankan sapphire industry and also start the first leg of the exploration,” Olivia Young, Marketing Executive of GemFields told Business Times in a separate e-mail communiqué. Ian Harebottle, CEO Gemfields commented; “We are pleased to start this next phase of activity in the Sri Lankan gemstone industry. World famous for the quality of gemstones, we are optimistic we will be able to bring our proven-expertise to this already-established market for the benefit of local mining communities and the Sri Lankan gemstone industry”.
Expressing their concerns, on the entry of the large UK company, several local gem traders had earlier warned that the present traditional environmental friendly system of gem mining and trading in Ratnapura and the gem business of Sri Lankan’s will be greatly affected by the invasion of this company with exploration and gemstone experience achieved in Zambia and Mozambique. But dispelling fears of local gem traders and miners, Mr. Natarajan noted that the company will not enter into gem mining in Ratnapura without carrying out a proper exploration procedure. It will adhere to the country’s laws, rules and regulations and there was no intention to carry out mining at present.