Richland Resources (LON:RLD) is to cut a third of the workforce and install body scanners to improve the performance of its Merelani tanzanite mine in Tanzania.
The Tanzanian government has also issued desist notices to small miners working adjacent to Block C at Merelani in an attempt to curb the illegal mining that has dogged Richland’s operation.
Block C is now jointly owned by Richland and STAMICO, the Tanzanian state mining company, and while it welcomed the Tanzanian government’s move Richland said it cannot employ a full workforce until the area is fully secured and the illegal miners ousted.
After a review of staffing needs, 229 of 670 of those employed at Merelani face losing their jobs while 41 have been suspended for serious employment breaches.
Richland is also looking at a sale of online retail arm the Tanzanite Experience as part of its strategic review, while its Tsavorite project has also been earmarked for sale or joint venture.
Terms have also now been agreed over a binding agreement for the joint development of the Arusha graphite deposit at Block C and Kibaran's next door Merelani-Arusha Graphite Project.
Bernard Olivier, Richland Resources’ chief executive, said: "The global retail market for coloured gemstones is thriving and we are taking active steps to deliver value from our mining expertise and marketing relationships.
“Merelani has the potential to be very profitable for TML and STAMICO, and the restructuring and efficiency programme are yielding immediate results.
“As Richland monitors the Tanzania situation we shall move ahead with our recently announced sapphire re-development in Queensland, Australia.”