Gemfields enters Sri Lankan JV
British miner Gemfields has announced it has entered a joint venture with East West Gem Investments (EWGI), as the group seeks to extend its network in Sri Lanka.
Gemfields Group Limited
11.38p
16:55 19/04/24
Gemfields has acquired 75% operating interest in 16 exploration licences, covering a range of minerals, for about $0.4m and under the agreement Jersey-based EWGI will hold 25% of three Sri Lankan-based subsidiaries.
In a statement released on Monday, Gemfields said it aims to utilise its “proven exploration and gemstone experience” in Sri Lanka, in a bid to replicate the success the company has achieved in its operations in Zambia and Mozambique.
“With revenue-producing emerald and ruby operations in Zambia and Mozambique already in the Gemfields portfolio, the proposed development of sapphire operations in Sri Lanka will realise our stated red, blue and green 'traffic light' of coloured gemstones strategy,” said group chief executive Ian Harebottle.
Under the agreement, Gemfields and EWGI will establish a gemstone trading company called Ratnapura Lanka Gemstones, which has already been approved by the Sri Lankan board of investment.