JOHANNESBURG (miningweekly.com) – Aim-listed Gemfields has postponed its emerald auction until February to allow its India-based customers time to adjust to that country’s newly implemented demonetisation programme, which removes high denomination banknotes from circulation.
The two-month delay in auctioning the predominantly higher-quality emeralds sourced from the Kagem emerald mine, in Zambia, has been well received, the company said in a statement on Thursday.
“The majority of our customers for rough emeralds hail from India. As has been widely covered in the international media, the new demonetisation programme will require an adjustment period to allow industries and stakeholders to adapt to the new policies,” explained Gemfields CEO Ian Harebottle.
Last month, newswire Reuters reported that Indian Prime Minister Narendra Modi had decided to abandon the country’s use of 500 rupee and 1 000 rupee banknotes “in a bid to flush out cash earned through illegal activities, or earned legally but never disclosed”.
Meanwhile, Gemfields’ Singapore-based auction for mixed-quality rubies sourced from the Montepuez ruby deposit, in Mozambique, remains scheduled for December.
“Our ruby auction will proceed as planned, given that rubies have a diversified customer base dominated by Thailand, Sri Lanka, Myanmar and China,” Harebottle pointed out.
Gemfields maintained its revenue guidance for the 2016 financial year.