People: Harebottle seeks fresh pastures

Entrepreneurial South African Ian Harebottle is looking for new assets around the world for diversified emerald producer Gemfields, which has hoisted annual pre-tax profits from $1.5 million (£940,000) to $19.9 million on near-doubled production from its Kagem mine in Zambia. He is the company’s chief executive officer, having formerly headed its one-time partial bid target Tanzanite One, which three years ago fought off Gemfields’s approach in a no-holds-barred battle that provided ample entertainment for the City.

Harebottle, who was more favourably disposed to Gemfields and its major backer Pallinghurst than his boardroom colleagues, says demand for coloured gemstones is continuing to increase globally after the recession-induced trough of 2008-09. He argues that the crisis forced companies to look for new markets beyond the USA and Europe and as a result 60 per cent of demand now comes from India, China and the Arab states.

Citing stepped-up marketing and advertising for emeralds and other coloured stones, Harebottle declares the market 'is not even half way to the level of saturation'. He says cash-rich Gemfields is scouting for other coloured stone deposits around the world, from South America to Africa.

Pallinghurst, the vehicle for mining tycoon Brian Gilbertson, ex-head of the BHP Billiton colossus, and his son Sean, holds 64 per cent of Gemfields. It was Gilbertson who recruited Harebottle from Tanzanite One, which enjoyed brief AIM stardom before falling back and whose original prime mover was entrepreneur Ed Nealon, launcher of Aquarius Platinum among other ventures.

Unhampered by false modesty, Harebottle points out that Gemfields has grown two and a half times since his appointment. He says the company is no longer particularly close to the Gupta gem trading family, originally its key partner on flotation.

Of former director Rajiv Gupta, Harebottle comments, ‘My goodness, he is a dreamer.’