This content was first published on IGR – Italian Gemological Review no. 8 in 2019. The information provided here is therefore current as of the original publication date.
Fura Gems announced in July 2019 the acquisition of the Capricorn Sapphire mine from the former tanzanite miner and LSE listed Richland Resources. The mine is located in the Central Highlands district of Central Queensland, Australia, 300 km inland from the Great Barrier Reef. The area contains one of the largest sapphire deposits in the world, amounting to an estimated 100 million carats or more. Sapphires were found in this district 150 years ago and at the end of last century over 70% of the world’s sapphires were produced here.
Recently revenues might not have been up to expectations and in December 2017 the mining operations have been temporarily halted due to “extreme weather conditions and a weak market environment” according to Bernard Olivier, Richland chief executive at that time. He also stated that “sapphire prices remain under pressure from the influx of sapphires from Madagascar mined in an environmentally protected area by approximately 50,000 unlicensed, illegal, small-scale miners”.
Sri Lanka with its alluvial sapphire deposits is also a strong competitor producing a significant share of sapphires unearthed in the world thanks to thousands of licensed small scale miners. Little space remains in that country for industrial miners as huge as Fura Gems, specialized in large-scale, mechanised operations.
This is why investing in Australia, a well regulated and safe country, is a strategic step for Fura Gems to revamp the local sapphire mining industry that was suffering too high industrial costs compared to a too low penetration on the international market. This deficiency can be filled by the new management, being Fura Gems a global player that already integrates the supply chain from mining to distribution in Colombia and in Mozambique. Australian sapphires are the missing link to complete the “big three” colored stone basket of Fura Gems, an offer that its main competitor Gemfields is not able to propose as much wider including sapphires. In the second half of 2019 the company will focus on assessing the potential of the deposits covering around 1210 acres / 490 hectares to expand the operations next year.
Gem News published on IGR – Italian Gemological Review #8, Winter 2019
Errata corrige: on the printed edition the “Capricon Copper mine” image has been incorrectly inserted instead of the “Capricorn Sapphire mine”. The online article was modified on October 20th, 2020.
