Wednesday, June 21, 2017

Tanzanite - Low Production, High Operational Costs

Miners whose survival depends on the Tanzanite business from the Mirerani mining area in Simanjiro District in Tanzania have a reason to worry due to skyrocketing operational costs, coupled with dwindling production. The Tanzania Mineral Audit Agency, in its 2012 - 2015 reports show that Tanzanite mining profit margins were negative, including investment costs to maintain future production. With output quickly dwindling miners aren't even covering their costs.
Tanzanite is found in only one spot on the planet, the Manyara Region in Northern Tanzania near the city of Arusha and Mount Kilimanjaro. Found in 1967, the stone was initially cheap and was used as a substitute for more expensive sapphire. Over time, as the deposit was depleted, trade interest in Tanzanite grew. The stone is noted for its remarkably strong trichroism, appearing alternately sapphire blue, violet and burgundy depending on crystal orientation.

Today tanzanite is a very popular gemstone with an ever increasing price.