Gemfields steps up efforts to tap Chinese market

The new rules are a clear effort to improve the current legislation as seamlessly as possible, but in close attention to the international industry dynamics and to a number of other sensitive issues (such as environmental recovery and security).

Shareholders approved the discounted rights issue at a special meeting in London held Wednesday.

The two separate decrees aim at making the local industry more competitive and sustainable, while while implementing rules on the collection of higher mining royalties.

Michel Temer is expected to issue a decree next week introducing key changes to mining rules that date back to the 1960s.

Area is close to the Venetia mine, operated by De Beers, which delivers around 40% of South Africa’s annual diamond production.

President Joao Lourenço said changes aim at attracting more investment, increasing production and securing higher government revenue.

No longer under water.

The mine has probable reserves of 5 million tons at a grade of 31 carats per 100 tons and inferred resources of 10.3 million tons at 31 carats per 100 tons.

The company, which began operations a year ago, said the move seeks to strengthen its communication with key stake holders and consumers.