LONDON (Alliance News) - Richland Resources Ltd Tuesday said operations at its subsidiary responsible for tanzanite marketing and promotion, sightholder engagement, and community and social relations will be re-aligned following a review with stakeholders.
A sightholder is a bulk purchaser of rough gems for processing and jewellery making.
In a statement, Richland Resources said the Tanzanite Foundation's re-alignment comes as it looks to support a coordinated strategy integrated across all regions. It also wants to support a sales and marketing model that can complement new gemstone product lines, such as sapphires.
Richaland Resources expects to save USD300,000 every year from the operational restructuring of the Tanzanite Foundation.
Over the past nine months Richland has been reviewing operations across the group as it positions itself to bring on new gemstone production lines and create a more flexible body to engage in tanzanite sales.
The Tanzanite Foundation New York representative office is to close as part of the re-alignment.
The company said that community and social relations projects in Tanzania remain unaffected.
"The Tanzanite Foundation has a significant role in the recognition of tanzanite as a premier gemstone and promoting sightholders and the tanzanite industry. Following an extensive consultation process with sightholders and other key stakeholders we shall implement a series of changes within the Tanzanite Foundation that will support a more flexible and efficient operation," Chief Executive Bernard Olivier said in a statement.
"While cost savings are anticipated from this decision we see the main future benefit of the changes as coming from the ability to develop and integrate multiple gemstone sales channels for Richland," Olivier added.
Richland Resources shares were Tuesday quoted up 3.1% at 3.35 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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