Ruby production runs at full speed at the facilities of Greenland Ruby, owned by Norwegian LNS. However, there is a lot of work to do from extraction inside the mine and until polished and ready-made rubies are presented. (Photo: Anders Bergvik, Rana Gruber and TNG)
Ruby production runs at full speed at the facilities of Greenland Ruby, owned by Norwegian LNS. However, there is a lot of work to do from extraction inside the mine and until polished and ready-made rubies are presented. (Photo: Anders Bergvik, Rana Gruber and TNG)

Greenland Rubies for NOK 200-300 Million Annually

LNS Greenland estimates a ruby turnover of NOK 200-300 million next year.

Greenland Ruby, a Norwegian-owned mining company operating on Greenland, hopes to sell its first rubies before Christmas this year, and aims at 10 to 15 percent of the world market for rubies.

Time for harvesting

The LNS Greenland ruby adventure has taken a while to get rolling, however, not it seems that the time for harvesting has finally arrived.

– At least we receive good feedback on our products, and we want to make our rubies something quite unique and exclusive, Managing Director Frode Nilsen of LNS says to High North News.

Nilsen is not worried about rubies from Greenland hurting prices or the market balance when its production gains momentum.

Top of the World

– Very much is about branding this correctly. We emphasize our exclusivity, the spectacular aspect about the rubies coming from ‘the top of the world’ – not to mention that they are produced according to the highest ethical and social standards.

In Asia, many people perceive the Arctic as very exotic, so we believe we shall be able to market and sell our gems in a good way, Nilsen says.

– Our volume is not overwhelming, while at the same time colored, red and pink gems are in fashion and see an increasing demand.

NOK 200 to 300 million

The LNS Manager is not very specific when it comes to figures for the Greenland ruby mine.

– Production is well underway, we have made some innovations that have allowed us to increase production substantially, and we hope to close our first sale during the last months of this year. These days our sales division is attending a fair in Bangkok, so we will see if we can close some sales there.

– If all goes well and if we achieve the prices we hope for, we estimate an annual turnover of some NOK 200-300 million in 2018 and the coming years.

However, that depends on many factors, such as volume, prices etc., Nilsen stresses.

Many years ahead

LNS has an operating license for 30 years, with an option to extend it for another 20 years, on this ruby deposit. What has been uncovered or mapped until now, indicates a volume that will allow approximately 10 years of operations.

In addition to this, preliminary and more shallow surveys at the rims of this deposit indicate that there may be significant amounts of gems to collect – for many years ahead.

– However, we cannot say too much in detail yet, says Managing Director Frode Nilsen of LNS.

Én kommentar

  1. Highest ethical standards…BS…

    True North Gems Corporate Update
    VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 18, 2017) – True North Gems Inc. (TSX VENTURE:TGX) (“True North” “TGX” or the “Company”) provided today, an update on the bankruptcy proceedings involving True North Gems Greenland A/S (“TNGG”), the Company’s operating subsidiary in Greenland, with assets including the Aappaluttoq Ruby and Pink Sapphire deposit and mine in S.W Greenland. The Company also announced the engagement Danish counsel, Skau Reipurth & Partners, to represent the Company in this process.

    Update on the Bankruptcy Process:

    TGX management believes the bankruptcy process managed by court-appointed Trustees and supported by the Greenland government was biased, unnecessarily expedited and potentially negligent. In reaction to these concerns the Company has formed a Special Committee to investigate the process, and the decisions and actions of the Trustees and the Greenland government, to determine if legal action is appropriate.

    To adequately defend the interests of shareholders, the Company has engaged Danish counsel Skau Reipurth & Partners to address the bankruptcy Trustees with respect to the TGX’s concerns and to formally solicit responses to unanswered questions posed by the Company’s Board of Directors.

    TGX specific concerns are:

    Conflict of interest of the court-appointed Trustees who have business relationships with LNSG, LNS and the Greenland government;
    Lack of transparenc y with respect to the bidding process and the criteria upon which the decision to accept the bid of LNSG was made, without consultation with the key creditors;
    Negligence of the Trustees in not fulfilling their duties to act in the best interest creditors by expediting the bankruptcy process and not allowing a fair market to develop for TNGG’s assets; and
    A priori determination of the outcome of the bankruptcy process.
    These concerns, and others, have been presented to the Trustees; however, no sufficient response to the Company’s requests for information have been provided to date. While the Trustees have not responded to TGX’s requests for additional information, the bankruptcy process has advanced sufficiently to allow the government of Greenland to transfer the assets of TNGG to LNSG, and operations at the Aappaluttoq mine site to be re-established. The Trustees have not provided the Company any opportunity to review the decision of the Trustees, and neither has the impact of this decision on the Company, as TNGG’s largest creditor, been addressed.

    Chronology of Events :

    On August 30, 2016: The shareholders of TNGG voted to initiate voluntary bankruptcy to protect the assets of TNGG and allow a transparent and fair bankruptcy process to go forward, in the best interests of all stakeholders and creditors.
    September 4, 2016: The Court of Greenland was notified of the TNGG’s request for bankruptcy protection and appointed Trustees.
    On September 7, 2016: TGX announced TNGG shareholders collectively agreed to intiate voluntary bankruptcy proceedings under the Bankruptcy Act in Greenland. At that time, the Company was advised all bids to acquire the assets of TNGG needed to be submitted by September 18, 2016.
    On September 11 2016: Trustees advised TGX all bids to acquire the assets of TNGG be submitted no later than September 14, 2016, justifying the expedited process on the basis “it is in everyone’s interest to secure that the final buyer can commence work as soon as possible and before the winter sets in”.
    On September 14, 2016: TGX submitted a bid to acquire the assets of TNGG, while at the same time protesting the expedited process was unjustified and not conducive to maximizing value for existing creditors.
    On September 15, 2016: TGX became aware of media reports indicating the bankruptcy estate had reviewed and considered the binding offers received and entered into a business transfer agreement with the successful bidder.
    On October 5, 2016: TGX was advised the Greenlandic authorities published their consent to the transfer of the exploitation and exploration licenses to LNSGG.
    As of the date of the decision to enter voluntary bankruptcy, TGX owned 76% of the outstanding shares of TNGG, LNS Denmark APS (together with its affiliates, the “LNS Group”) owned 17% of the outstanding shares of TNGG, and Greenland Venture A/S (“Greenland Venture”) owned 7% of the outstanding shares of TNGG.

    TGX was also the senior creditor of TNGG.


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