LONDON (Alliance News) - Richland Resources Limited Thursday said it has entered into a sales agreement with Chow Tai Seng Jewelry Co. Ltd. in China.
The precious gemstone exploration and production company said its tanzanite jewellery is to be marketed through over 2,200 jewellery stores in China as part of the deal, dependent on Richland supplying polished and cut tanzanite on an order-by-order basis.
Richland Monday said its sales were down 11% for the six months to June 30, to USD7.5 million from USD8.4 million the previous year, as production optimisation was affected by illegal underground mining on the company's Block C license in Tanzania. The illegal mining had resulted in significant danger to its employees, damage to the infrastructure on two of its mines, and the theft and damage of key equipment, it said.
The Tanzanian government helped to remove the illegal miners and the area is now being reclaimed and prepared to restart in the company's fourth quarter.
"Chow Tai Seng is one of the world's most dynamic jewellery companies and I am delighted by today's agreement that allows Richland to expand its product into such a high growth luxury goods market," Chief Executive Bernard Olivier said in a statement.
Richland shares were up 0.25 pence, or 3.12%, to 8.25 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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