Gemfields Delaying Emerald Auction Due to Indian Financial Issues

(IDEX Online) – Gemfields plc has rescheduled an auction of predominantly higher quality emeralds from the Kagem emerald mine in Zambia to February 2017 from December 2016 due to the problems caused by the demonetization program in India.

The India government last month announced it would be withdrawing the 500 rupee and 1,000 rupee notes from circulation in a bid to tackle money laundering.

But it is also hitting the diamond and gemstone industry where many transactions are cash based.

Ian Harebottle, CEO of Gemfields, commented: "The majority of our customers for rough emeralds hail from India. As has been widely covered in the international media, the new demonetization program will require an adjustment period to allow industries and stakeholders to adapt to the new policies. For this reason, we have decided to delay our forthcoming emerald auction by approximately two months, until February 2017. This decision has been well received, and appreciated, by our auction participants."

Gemfields added that its auction of predominantly mixed quality rubies from the Montepuez ruby deposit in Mozambique will proceed in Singapore in December 2016 as originally planned."Our ruby auction will proceed as planned given that rubies have a diversified customer base dominated by Thailand, Sri Lanka, Myanmar and China. There is no change to our revenue guidance for the 2016 financial year," Harebottle added.