Richland Resources says it will not put any more money into TanzaniteOne Mining (TML), its joint venture with state-owned mining group Stamico, until it completes a strategic review of its operations as well as boost Block C security at Merelani, in Tanzania.
The company signed a joint venture agreement with Stamico last year, which it hoped would see the Tanzanian army help eject the illegal miners from Block C at Merelani.
However, Richland said this had not taken place and it was now assessing its operations, which included a review of all costs, revenue optimisation and best use of funds available for investment in gemstone projects.
Richland chief executive Bernard Olivier said the mine at Block C was one of the most advanced gemstone recovery operations in the world, capable of generating highly attractive profits for its joint venture partners and significant royalties and taxation revenues for the Government neither of which are paid by the illegal miners.
“However under the present conditions significant productive areas of Block C remain under the control of illegal miners and until these areas are recovered, and a safe working environment for TML staff guaranteed, Richland do not believe it is prudent to invest further funds into TML’s operations in Tanzania,” he said.