Richland Resources (LON:RLD) is to streamline its tanzanite marketing operation to save costs of US$300,000 annually and incorporate its new sapphire mining business.
The New York office of the Tanzanite Foundation is to close, while in future it will focus on selling the tanzanite mined by Richland.
Historically, the Tanzanite Foundation also acted as a global body to promote the tanzanite gemstone itself with Richland bearing most of the costs.
The generic marketing of tanzanite will now be handled by a centralised global body serving markets in the US and Europe and growth markets in Asia.
Richland will base the size of its marketing operations on tanzanite produced at the Merelani tanzanite mine and operated by TML, its joint venture with the Tanzanian state mining company STAMICO.
The operation in Tanzania has been dogged by illegal mining and working at the mine is currently suspended while it waits for the government to secure the area.
Bernard Olivier, Richland Resource’s chief executive, said: "The Tanzanite Foundation has 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 of the changes as coming from the ability to develop and integrate multiple gemstone sales channels for Richland.”
Olivier added that its community projects in Tanzania would not be affected by its rationalisation.