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  Gemstone market forecast to multiply five times in value over coming 10 years


February 15, 2013


Global demand for polished colored gemstones is forecast to multiply by five times over the coming 10 years to a $10 billion market, Gemfieds CEO, Ian Harebottle, told Dow Jones Newswires.

Speaking to Dow Jones at the Mining Indaba conference in Cape Town, South Africa, Harebottle said, "We're going to replicate what [De Beers] did right and do it better and see what they did wrong."

Gemsfields has long stated its intention to a play a role in the colored gemstone market that compares with that historically played by the De Beers in the diamond market. But the colored gemstone market, which Harebottle said was estimated to be worth $2 billion in 2012, is still less than 3 percent of the diamond market.

But Harebottle added that he does not see the colored gemstone market as being in competition with diamonds, saying instead that the one complements the other.

Gemfields, which owns 75 percent of the Kagem mine in Zambia, currently accounts for about 20 percent of worldwide emerald production and plans to double production there in the next five years. It also will begin production of rubies at its mine in Mozambique in 2013, and is reportedly looking to acquire a sapphire mine either in Sri Lanka or Madagascar. The company also has a 50 percent interest in an amethyst mine, Kariba Amethyst, in southern Zambia.

While Gemfield's growth has been impressive it will be some time yet before it can be mentioned in the same breath as De Beers. The London-based firm more than doubled its sales to $83.7 million in 2012, from $40.1 million in 2011.

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