Short Code : AFG
ISIN Code : ZAE000025540
The Board of Directors of African Gem Resources Limited ("AFGEM" or "the
Company") is pleased to announce that in a unanimous decision of the full
bench of the High Court of the United Republic of Tanzania, the law suit the
company faced has been struck off in its entirety with costs.
Three mining associations in Tanzania filed various charges against AFGEM,
members of its directorate and the previous Tanzanian Minister of Energy and
Minerals. The allegations related to the legality of AFGEM's mining licence,
taxes paid, alleged misconduct by AFGEM staff towards small-scale artisanal
miners and AFGEM's alleged monopolization of the tanzanite market.
Ami Mpungwe, chairman of the group's Tanzanian subsidiary, cites the ruling
as reaffirming Tanzania's commitment to nurturing foreign investment. The
finding of the courts endorses Tanzania's integrity as one of Africa's
premier investment destinations, he says.
AFGEM continues to develop the world's most modern tanzanite mine in
northern Tanzania. Further to the cautionary announcement dated 13 August
2001, with the positive outcome of the court case, management will reassess
the mining strategy with a view to speeding up the development of the ore
body.
Johannesburg
22 August 2001
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