JOHANNESBURG (miningweekly.com) – Amid an ongoing review of group operations, Richland Resources announced on Monday that subsidiary, the Tanzanite Foundation, which is responsible for tanzanite marketing and promotion, sightholder engagement and community and social relations (CSR), was set to undergo “structural and operational changes” from September 1.

These changes, which were aligned with the group’s long-term goal of introducing new gemstone production lines, such as sapphire, and creating a more flexible body to engage in tanzanite sales, were aimed at better aligning the foundation with global tanzanite markets and the expectations of the sightholders that bought the gems mined by Richland’s gemstone production arm TanzaniteOne Mining (TML).

While the Tanzanite Foundation had historically acted as a global body to promote the tanzanite gemstone itself, rather than gems solely mined by TML, Richland said in a statement that this had been the primary contributor to the costs of its subsidiary.

“Following a consultation period with key stakeholders, including sightholders, mining, and market stakeholders, it has been decided that tanzanite shall be represented through a centralised global body serving both mature markets, such as the US and Europe, and growth markets in Asia.

“The subsequent resource reallocation will best fit the requirements of Richland and sightholders alike,” stated the company.

The New York representative office would close, with promotional, educational, and information distribution functions being absorbed by the existing global operations.

“It is anticipated that Richland will benefit from an annual cost saving of approximately $300 000 that will be achieved from the operational restructuring of the Tanzanite Foundation.”

CSR projects in Tanzania would remain unaffected and would continue to be maintained by TML.

Richland would now look to scale operations, depending on the levels of economic tanzanite produced at the Merelani tanzanite mine, operated by TML, in Tanzania.

Increased production would allow the Tanzanite Foundation to continue to promote tanzanite as a leading luxury product in an increasingly competitive marketplace.

The company was awaiting the results of commitments made by the government of Tanzania to increase safety in the Merelani area for TML workers prior to any further decision on mining operations.

Commenting on the announcement, Richland Resources CEO Bernard Olivier said the foundation had a significant role in the recognition of tanzanite as a premier gemstone and promoting sightholders and the tanzanite industry.

“While cost savings are anticipated from this decision, we see the main future benefit as coming from the ability to develop and integrate multiple gemstone sales channels for Richland. We are extremely proud of our CSR projects in Tanzania and will be maintaining them, as well as fostering new projects,” he noted.