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Richland has finally relinquished its tanzanite concession in Tanzania, at the foot of Mount Kilamanjaro.



  It's now final, Richland exits Tanzania


March 30, 2015


The company that once touted itself as the largest, structured rough producer in the colored gemstone sector is finally withdrawing from Tanzania, the country in which it had staked its future. Richland Resources has announced that it has completed the sale of its tanzanite-mining unit, beneficiation and tsavorite-license interests in Tanzania to Sky Associates for $5.1 million.

Few details are available about the Sky Associates Group. The company, whose majority shareholders are Tanzanians, is headquartered in Tortola, in the British Virgin Islands. The group reportedly has been operating out of Hong Kong, dealing in a range of gemstones, including pink tanzanite, yellow tanzanite, axinite, grossular garnet, kyanite and diopside.

Richland's sale of its Tanzanian holdings to Sky Associates was approved by the company's shareholders and was conditioned on the approval of the Tanzanian Energy and Minerals Minister and the South Africa Reserve Bank.

The gemstone miner announced in November 2014 that it would exit Tanzania to focus on its sapphire operation in the Capricorn sapphire project in Queensland, Australia, where the first sales through its existing sight system are anticipated before July of this year.

The challenge of mining in Tanzania eventually became too difficult for Richland, which through its Tanzanite One mining company was the largest gemstone mining operation in the Mererani mining area, in the north of the country, near Arusha.

After a string of regulatory moves on the part of the Tanzanian authorities, during which Richland was forced to share its TanzaniteOne Mining concession with the government-owned State Mining Corporation (Stamico), the company saw a continuing fall in tanzanite production, which it attributed mainly to illegal mining in the Block C license area.

Eventually it proved too much, and Richland decided to sell off its remaining holdings in the East African country.

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