New York – Following the news that it had suspended mining operations, Greenland Ruby last week provided a formal update on its future, including its plans to resume operations in 2025.
The company detailed office closures, operational consolidations, layoffs and more in a statement released on Thursday to address “incomplete” information in recent media reports.
Late last year, the miner closed its Aappaluttoq mine, which had been producing rubies and pink sapphires since 2017, after sales and profitability fell short of the company’s expectations.
“In response, we have implemented a number of measures aimed at improving organisational agility and efficiency. One of these measures was the temporary suspension of mining operations, which was implemented on 31 December 2022,” said Arnt-Eirik Rørnes, CEO of Greenland Ruby.
“The mine is now in a state of care and maintenance.”In addition to the temporary closure of the mine, Greenland Ruby said it has onsolidated most of its operations, including its inventory fulfilment centre, to Denmark, but will still have a presence in the United States and Thailand.
Its current inventory levels are sufficient to continue sales until 2025, it said, also noting that it has “achieved positive sales success in 2023, driven by substantial offtake agreements amounting to several million dollars”.
Greenland Ruby has also reduced the number of offices it has worldwide and cut staff.
Last month, Greenland’s Sermitsiaq newspaper reported that the mining company had laid off 30 mine workers earlier this year and later dismissed the remaining seven.
Greenland Ruby did not respond to direct enquiries from National Jeweler about the layoffs.
Sermitsiaq also reported that the mine has a debt of 509 million Danish kroner, or about $73 million at current exchange rates. The company’s latest statement made no reference to the reported debt.
Greenland Ruby said it expects to resume exploration and mining operations and rehire staff in 2025.
