Mustang Opens Sales, Marketing Office in Thailand
Sydney–Mustang Resources has announced a few changes to its sales and marketing operations following a strategic review of its Montepuez ruby project in Mozambique.
The review was initiated and overseen by the company’s new managing director, Bernard Olivier, who was named to the position in January.
Mustang will close its sales facilities in Mauritius, which were established to hold large-scale auctions. The mining company said given its current production levels, they’re no longer suitable.
It now has set up a sales and marketing office in Chanthaburi, Thailand, known to be one of the main trading and beneficiation centers for colored gemstones in the country. The new office there is smaller and lower cost than the Mauritius facilities, Mustang said.
The company’s ruby inventory of more than 333,184 carats that was stored in both Mauritius and Mozambique has been relocated to Chanthaburi, where it will be re-parcelled and prepared for sale.
Mustang also said it has revised its marketing strategy to base it on the regular sales of rubies of all qualities to local and international customers. It’s intended to help the company regularly gain market intelligence so it can identify demand in all categories of rubies as well as establish relationships with ruby customers to meet their individual requirements.
The Chanthaburi office also will oversee select heating and cutting of the company’s mined rubies.
Mustang held its first auction of rubies from Montepuez in Port Louis, Mauritius in October, but called the results “disappointing.” Of 21 “schedules” offered, comprised of multiple lots, eight were sold.
Mustang said at the time that the final results “reflected inadequate volumes in each category,” but added that the sale allowed them to gather valuable market intelligence for future tenders.
The next planned plant upgrade at its Montepuez ruby project was delayed so the company could focus on accumulating more rubies in each of the most desired ruby categories ahead of its next tender, slated for mid-2018.
Mustang’s managing director resigned from his position shortly after the sale.
In other company news, Mustang announced it has upgraded another exploration license at Montepuez to a mining concession.
The area covered in the former prospecting and exploration license is an integral part of its ruby project, it said. The majority of the ruby bulk sampling and pitting conducted by Mustang over the past several months was undertaken on the license.
The mining concession is valid for an initial term of 25 years.
Mustang now has to complete an Environmental Impact Assessment and associated enjoyment of land within three years.
The mining company also has appointed experienced resources executive Evan Kirby as a non-executive director.
Kirby is a metallurgist with more than four decades of experience. Over the last couple of years his focus has been on the development of an African-based graphite project.
He is based in Perth, Western Australia.