This content was first published on IGR – Italian Gemological Review no. 19 in 2024. The information provided here is therefore current as of the original publication date.
Gaining autonomy from Denmark led Greenland to focus on gemstone mining, particularly rubies in the Aappaluttoq region, known for its rich corundum deposits. Initially managed by True North Gems Inc. (TNG), the project faced delays due to Greenland’s political transition and local opposition.
Greenland Ruby AS, which took over after TNG’s bankruptcy, finally launched operations in 2017 with backing from the Norwegian company Leonhard Nilsen & Sønner (LNS). It was noted that the company focused its marketing efforts on highlighting responsible resource management and sustainability.
The Arctic ruby, in essence, became a test to see how much a strong environmental identity could compensate for extraction difficulties and the quality characteristics that are not comparable to the rubies that traditionally dominate the market.
However, ethical practices alone couldn’t work miracles. Most of the gems were cabochon-grade, and it was necessary to send part of the material to Thailand for treatment of frequent cavities. Given these challenges, it wasn’t entirely surprising when, despite an encouraging start, operations faced a major setback in 2023.
Production at the Aappaluttoq mine fell short of expectations, leading to a halt in operations and significant layoffs. The mine’s debt reached around $73 million, forcing the company to shut down offices and reduce its workforce. Although the mine was projected to have a nine-year lifespan, development at additional sites stalled, casting doubt on the company’s future. Despite substantial investments, the company struggled with managing its debt.
Recently, the board of directors of Greenland Ruby decided to initiate a debt restructuring process in the courts of Copenhagen and Nuuk to avoid bankruptcy. It remains to be seen if and to what extent the ethical advantages will be brought back to the table by any potential new ownership.
Gem news published on IGR – Italian Gemological Review #19 – Autumn 2024
