Gemfields forms jv to explore gemstones in Sri Lanka

Sept 15 (Reuters) - Gemfields Plc, which producesabout a fifth of the world's rough emeralds, said it had formeda joint venture to explore sapphire and gemstones in Sri Lanka.

The London-listed miner said the joint venture with EastWest Gem Investments Ltd (EWGI), a Jersey-registered company,would operate via three Sri Lankan subsidiaries. Gemfields wouldown 75 percent stake with EWGI holding the rest in the venture.

Gemfields, which mines emeralds in Zambia and rubies inMozambique, said it acquired 75 percent operating interests in16 exploration licences, covering diverse minerals, for$400,000.

A gemstone trading company called Ratnapura Lanka GemstonesPvt Ltd will also be created. It will focus on sourcing roughsapphires from various sources in the local market.

Gemfields has ambitions of creating a stable world marketfor coloured stones and polishing the gem's image in the sameway that Anglo American Plc's De Beers unit has longchampioned diamonds from London's Bond Street to China. (Reporting by Karen Rebelo in Bangalore; Editing by GopakumarWarrier)

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