Greenland Ruby has announced plans to sell its operations and undergo a major business restructuring due to financial difficulties. The company, which began gemstone extraction in 2016, has struggled with low sales and profitability over the past two years. It temporarily closed at the end of 2022 to cut costs.
CEO Arnt Eirik Rørnes explained that despite successful gemstone extraction and significant investments in both facilities and the local community, the company faced challenges due to rising interest rates and inflation. “We have invested heavily in our mining facility in Aappaluttoq and in Greenlandic community projects. We have also developed new, modern sales and distribution channels for our gemstones,” Rørnes said.
In September, the company assured it was not shutting down but merely pausing operations. However, following discussions with its largest creditor, Greenland Ruby decided to restructure. This process will involve appointing administrators to find the best solution for the company’s creditors and future. During this period, all payments to creditors will be suspended.
“The board believes in Greenland Ruby and its operations in Greenland,” Rørnes added. “We hold a license to one of the world’s richest ruby deposits and have created an innovative business model offering high-quality, certified gemstones worldwide. We also see potential for creating jobs and adding value in Greenland.”
The restructuring will affect the company’s market-oriented subsidiaries in the US and France, but not its service company in Thailand. Greenland Ruby will continue marketing and selling its rubies and pink sapphires throughout the restructuring process.
