TanzaniteOne Ltd. (AIM TNZ) recently held the third sale of rough tanzanite (‘Sight’). In terms of its Preferred Supplier Strategy, the company has initially appointed six Sightholders, with plans to increase this number later in due course of time.$$ TanzaniteOne has committed to supply six parcels per year to each of its Sightholders for a three year period. At each Sight, Sightholders receive parcels of rough tanzanite that have been graded according to an exhaustive rough tanzanite grading system, developed by TanzaniteOne, which includes a total of 896 grades. The Sightholder system has been put in place specifically to support the consistent supply of rough tanzanite – a significant commercial comfort in an industry that previously had a history of erratic supply and consequently, volatile prices.$$ All Sightholders reported being pleased with the quality of the parcels and commented that prices were stable and fair in relation to the quality on offer. Prices remained exactly on par with those of the last two Sights held earlier in this year. Sightholders immediately accepted all parcels.

Jaipur Satisfied :$$J.P. Tambi of K.L. Tambi & Co., Jaipur said, “Demand for tanzanite is very strong as a result of market confidence generated by the stable supply.”$$When asked to comment on the sale, Rahimullah, a Director of STS Jewels, Jaipur said: “We are satisfied with the Sight and can confidently plan our expansion in the United States. Continuity of supply helps us with all aspects of our business, most importantly we are now of the opinion that the future for tanzanite is bright.” Mike Nunn, TanzaniteOne’s Chief Executive commented further, “It seems that whilst some small dealers in are still trying to negatively influence tanzanite prices, we have now reached a point where tanzanite supply and prices are stable. Our prices have now remained consistent for our last three Sights, and even though we expect demand to increase towards year end, we are committed to not increasing our prices this year. We are confident that stability in the tanzanite industry is here to stay.”$$TanzaniteOnes’s next rough tanzanite Sight is expected to take place in September,2005.