SPECIAL ISSUE December 2015
WORLD EMERALD UPDATE Highlights of Bogota Symposium
Colombia opened its arms to welcome the world’s leading emerald experts from October 13-15. The First International Emerald Symposium was a huge success with more than 300 delegates from Colombia and around the world taking part. More than 42 global emerald specialists from governments, labs and private companies made presentations.
Organized by Fedesmeraldas, the Colombian Emerald Federation, and supported by all the country’s emerald-related bodies and the Ministry of Mines and Energy, the symposium addressed the challenges and opportunities faced by the world’s emerald industry, including resource management, manufacturing, treatments, certification, nomenclature, technology, consumer education and branding. The Symposium was followed by a field visit to the country’s best-know emerald mines by 30 participants, including geologists, gemologists, representatives of mining firms, high-end jewelry designers, traders and brand retailers. They visited the Muzo, Cunas, Pita and Chivor mines on the slopes of the Andean Mountains and received insights into the nature of the Colombian emerald industry.
SPECIAL ISSUE
SPECIAL ISSUE WORLD EMERALD UPDATE Highlights of Bogota Symposium
Cover page: Rough emeralds mined by Gemfields at the Kagem mine in Zambia. (Photo courtesy of Gemfields)
CONTENTS Foreword
Symposium Report and Presentations
42
6 16 17 18 20
Colombia Hosts First High-Level Global Emerald Symposium Gemfields Provides Insights Into Emerald Operations Belmont Head Describes Firm›s Brazilian Mining Business How Zambia Transformed Its Emerald Industry The New Dynamics of the Colombian Emerald Sector
Mine Tour
44
22 32
In Search of Colombia’s Green Dreams Flying Into The Heart of Colombia’s Emerald Mines
Education
44 50
Education and the Mine-to-Market Story Beautifying Emeralds - The Perennial Debate
Global Emerald Deposits
71
56 70 78 88 98 106
4 InColor ׀Special Issue
Emerald Deposits Around The World, Similarities And Differences The Emerald Mines of the Panjshir Valley, Afghanistan Emeralds in Russia: The Geology and Gemology of the Malyshev Mine
Emerald Origins
78
Update on Studies of Origin of Colombian Emeralds The Geographic Origin Determination of Emeralds Standards and Protocols for Emerald Testing
FOREWORD
ISSN: 1158934X To subscribe to InColor, go to www.gemstone.org/incolor or write to incolor@gemstone.org To advertise in InColor, write to incolor@gemstone.org or call (852) 2365 9318 InColor Editorial Committee Clement Sabbagh - Chairman Jean Claude Michelou - Editor-in-Chief Gary Roskin Terry Coldham Richard Hughes Managing Editor Albert Robinson Marketing and Sales incolor@gemstone.org Advertising Account Coordinator Ashlynn Yeong ashlynn.yeong@gemstone.org InColor Bureau USA Claudiu Margarit claudiu@gemstone.org [1] (212) 620-0900 Published by ICA (International Colored Gemstone Association Ltd.) Hong Kong Office: Unit 311B, 3/F, Heng Ngai Jewelry Centre, No. 4 Hok Yuen Street East, Hung Hom, Hong Kong Telephone: (852) 2365 9318 Fax: (852) 2365 9371 New York Office: 30 West 47th Street, Suite 201 New York, NY 10036, USA Tel: 1-212-620-0900 Copyright Contents of InColor are copyright. No part of this publication may be reproduced in any manner without the permission of the publisher. InColor makes every effort to ensure the accuracy of the information it publishes. Opinions expressed in this magazine are the sole responsibility of their authors.
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World Emerald Sector Takes a Big Turn: Is This Green Stone Becoming a Commodity?
A
fter the first international Emerald Congress was held in Colombia in 1997, no-one could have imagined that the sector would evolve so much. However, in just under two decades, Colombian emeralds have lost their leading global position as output has fallen to less than 35% from about 60% and the country now finds itself trailing Zambia. Against this background, when Fedesmeraldas, the Colombian Emerald Federation, which represents emerald producers, merchants, dealers and exporters, started planning the First World Emerald Symposium, which took place from October 13 to 15, it could not have imagined that the Colombian and world emerald sector had experienced such a huge change and widespread show of interest. What was initially thought to be an international event oriented to regional and global marketing and branding became a platform where globally important speakers representing governments, producers, trade organizations, labs, and many other bodies provided detailed presentations on all aspects of the emerald sector and addressed the latest developments and practices of international gemstone mining companies as well as new challenges in terms of traceability and regulations. The change in the emerald sector has been dramatic; big investors and publicly listed companies have changed it forever with smart marketing replacing romance and mystery with value and transparency and increased their grip on large production areas. A sophisticated diamond-style emerald grading classification is already an established fact for the rough material auctioned by multinational Gemfields plc which has more than 400 grading categories and is creating a wider understanding of the criteria for value and pricing. Leading Brazilian emerald miner Belmont has developed a very successful state-of-the-art mechanized, high-tech extraction and sorting process allowing a minimum labor involvement and increased security and theft prevention procedures. Around 50 years ago, the best diamonds were said to come from South Africa, with the origin being a type of synonym for quality. However, grading, marketing and education of consumers has changed this, with the origin of diamonds not being as important as far as quality and value is concerned, although origin has become crucial for traceability. With emeralds, providing an understanding of value by using clear criteria is critical to attracting Asian customers who already surpass western consumers in purchases and are certain to keep growing in numbers. A constant supply, clear classifications and an understanding of the basis for the stones› value will enable a significant increase in demand and rising prices and also encourage a rise in long-term mining investments. This new era is also illustrated by Muzo International Trading Company whose strategy includes powerful marketing based on the origin of the Muzo name, with cut and polished emeralds offered to luxury brands and the jewelry industry. Investors from Canada, China, Russia, the U.S. and U.K. are entering emerald mining in Zambia, Madagascar and Colombia. And Afghanistan is addressing its emerald mining and manufacturing sector under GIZ, World Bank and USAID development funding. With the arrival in Colombia of Gemfields, which has bought a large interest in the Coscuez mine and secured large exploration and mining rights in the Muzo and Quipama areas, the whole sector is changing. We can expect to see production of Colombian emeralds rise dramatically to again become the undisputed global leader. Government regulations are also changing the picture; in Colombia the application of the RUCOM, National Mineral Mandatory registration number, and additional decrees to enforce the traceability and legality of the internal supply chain protects both national and international mining investors against theft and unfair competition from illegal mining, while undeclared sources of material are becoming impossible to export legally. Are emeralds on their way to becoming a commodity? The future will tell, but it is certain that the emerald industry will never be the same again. Editor-in-Chief Jean Claude Michelou
InColor ׀Special Issue 5
WORLD EMERALD UPDATE
Colombia Hosts the First International Emerald Symposium The world’s first global symposium devoted to emeralds was held from October 13 to 15 in Bogotá, Colombia. It was the first time that producer countries have come together at a high-level global conference to discuss the issues relating to these precious green gems.
O
rganized by Fedesmeraldas ־the Colombian
By Cynthia Unninayar
Emerald Federation (CEF) ־the three-day event addressed the many challenges and opportunities facing the industry, along with heated discussions on a number of topics,
including one not often discussed in public. Participation and support came from the major
stakeholders in the global emerald trade, including the Colombian government’s Ministry of Mines and Energy, the nation’s emerald-related bodies, and private, governmental and trade delegations from Zambia, Brazil and Afghanistan. Representatives of the major international trade organizations were also present, including Benjamin Hackman, ICA president, Gerry Manning, AGTA vice president, Roland Naftule, CIBJO vice president, and Oscar Baquero, Fedesmeraldas president. Many of the world’s major laboratories were also represented including GIA, AIGS, Gubelin, GGTL, NGTC and LFG, among others. More than 200 local attendees and 150 international participants joined the symposium, including speakers who not only addressed the issues relating to the Colombian emerald trade, but also emerald mining and sales around the world. Topics included resource management, traceability, ethics, manufacturing, treatments, certification, nomenclature, technology, consumer education, risks, security, marketing and branding. For a detailed list of the speakers and their topics, visit the official website, worldemeraldsymposium.com.
6 InColor ׀December 2015
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WORLD EMERALD UPDATE
Colombian Government’s Perspective
structure the small-scale mining sector in Colombia (see
After the opening welcome ceremonies, Colombia’s Vice
sidebars). One element of the five pillars is traceability under
Minister of Mines, Dr. Maria Isabel Ulloa, provided background
RUCOM (a system of the National Mining Agency of Colombia
on the nation’s mining industry in general, with specifics on
(ANM) that registers the marketers of minerals in the country).
the emerald sector. She also talked about the different types
Each mine and marketer must have this government
of mines—large, medium, small, and survival—stressing that
certification, detailing where the gems were mined. If a
each must be treated differently. Her main point, however,
company cannot prove the provenance of its minerals, the
dealt with the issue of transparency. “Currently, some 63
gems may be seized. A part of this certification relates to other
percent of mining activity is carried out without meeting
considerations, such as abiding by certain environmental
legal requirements or paying taxes,” she said, explaining that
guidelines and ensuring the safety and security of workers.
the “main interests of the government in the mining sector
“We are facing difficult times,” Ulloa added. “The
are the organization and formalization of the sector, the
Colombian emerald industry has reached a milestone and
inclusiveness of mining as a link between productive sectors
must be inclusive and competitive. International players
and, finally, competitiveness and efficiency of the sector.”
are arriving and raising the bar for Colombia. We support
Ulloa itemized the five pillars of the government’s mining
them, and our emerald industry must adapt to rigorous
policy as well as the three-door approach to organize and
international standards.”
Some 200 attendees from Colombia and 150 overseas visitors participated in the Symposium. (Photo: CEF)
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InColor ׀December 2015 7