By Cynthia Unninayar
With a focus on transparency, sustainability and corporate social responsibility (CSR), the International Colored Gemstone Association (ICA) successfully concluded its biennial congress in Jaipur.
“Jaipur is one of the most important gems and jewellery exporting cities in the world, and it has been our honour and privilege to host the ICA Congress here,” stated Rajiv Jain, chairman of the Jaipur ICA Congress.
Held from 21 to 24 October 2017, the 17th ICA Congress attracted 275 attendees from around the world, including 100 from India. Speakers included world-renowned gemmologists, miners, cutters, jewellery designers, business experts and authorities on ethics in the gemstone supply chain.
Topics ranged from mining to marketing and included a discussion on laboratory certificates, colour nomenclature, and jewellery design, with a strong focus on traceability, transparency, CSR and responsible sourcing.
The event opened with the welcoming speech by Praveen Shankar Pandya, chairman of India’s Gems & Jewellery Export Promotion Centre (GJEPC), who stated that GJEPC is ready to support generic marketing of coloured gemstones. He also discussed the various laws affecting gem trading in India, such as the GST tax and demonetisation, stressing the need for local dealers to be transparent in adopting these new rules.
Transparency and CSR were among the main themes evoked by Sean Gilbertson, CEO of Gemfields, the world’s largest coloured gemstone miner. He discussed the miner’s focus on Africa and its goal of providing a consistent and reliable supply of gems, while building trust with the local communities and customers. Gilbertson also indicated that Gemfields spends more than US$50 million in marketing efforts for its emeralds and rubies, a promotion benefiting the entire industry.
Gilbertson and Rajkumar Tongya, chairman of Indian gem dealer, Diacolor, unveiled the rare ‘Insofu’ emerald (‘Baby Elephant’), discovered in 2010 at Gemfields’ Kagem mine in Zambia. Tongya recently acquired the 1.22kg (6,100-carat) stone, explaining“this is one of the best pieces I have seen. Its size, quality and green lustre make it a truly rare and priceless stone”.
The opposite end of the mining spectrum was discussed by several speakers, who noted that 85 to 90 percent of gem extraction is carried out by small-scale, artisanal miners, some of whom are non-compliant with local laws. Highlighting these and other issues, Vincent Pardieu, of VP Consulting, spoke about the discoveries of sapphire in Madagascar and the need to balance responsible mining with jobs, underscoring the problems facing some national parks that have been overrun with illegal miners.
Federico Barlocher featured a film on ruby mining in Mogok, which included both small-scale and industrial techniques, noting that many small mines are losing money. He elicited chuckles from the audience when he showed several pictures of Mogok’s ‘pigeon-blood red’ rubies, followed by an image of one with a different colour, yet claimed to be ‘pigeon-blood red’ “by some labs”, bringing up controversy about gemstone nomenclature.
Edwin Molinas, president of Aprecol (Asociación de Productores de Esmeraldas), spoke frankly about challenges faced by large-scale miners in Colombia when it comes to local people, who often think of these miners as arrogant, disloyal and dishonest. “We are losing the battle with communities,” he lamented, insisting that large-scale miners must build bridges with the people in their area. He gave several examples of this bridge-building by the emerald industry in the form of hospitals, environmental protection and working with local law enforcement.
Ethics was a major component in the talks by most speakers. Assheton Stewart Carter, director of the Dragonfly Initiative, brought up accusations by several NGOs of human rights and environmental abuses in the gem trade. “It’s too easy to cry ‘fake news’ when it comes to these claims, because there is usually an elementof truth in them,” he warned. Carter emphasised the importance of developing a supply-chain standard where cutters and miners can have a dignified life. Carter also mentioned how silicosis, a disease caused by inhaling dust during the gemstone cutting operations, affects people in a number of countries.
Following Carter, Rajiv Jain, chairman of the Jaipur ICA Congress and the head of Sambhav Gems, pointed out that no case of silicosis has been reported for cutters in Jaipur because they use wet techniques. He added, however, that agate cutters in Khambat, which represent less than one percent of India’s total gem production, were at risk for silicosis because they used dry techniques. To remedy the situation, the GJEPC sent officials to Khambat to educate the artisans on safer methods.
In terms of business opportunities, Prida Tiasuwan, chairman of Pranda, explained the three tax structures in Thailand—import, VAT, excise—and how the laws have changed to help gem and jewellery companies. He noted that the Thai Gem and Jewelry Traders Association (TGJTA) is ready to help companies that want to do business in Thailand with services, including free advice by attorneys.
Because of the importance of China as a major market for coloured gemstones, Zhiwei Li, president of the Guangdong Gems & Jade Exchange (GDGJE), spoke on the increasing appreciation of coloured gems in his nation, indicating that it was already a US$10 billion industry that may rise to US$25 billion in the future.
Some controversy was raised by the talk of Daniel Nyfeler, managing director of Gübelin Gem Lab. With the goal of providing more transparency and traceability, Gübelin developed an ‘Emerald Paternity Test’, which allows a DNA capsule to be inserted into a gem at its source. This tiny 100-nanometre bar-coded capsule leaves a permanent, non-visible marker detailing the stone's origin and date it was mined. Brazil-based Belmont mine and Colombia’s Muzo mine are the first to help research this technique. After his presentation, several detractors of this type of system told me they were against this process for a number of reasons, among them is the possibility of abuse by people who might obtain the capsules and place them in emeralds from anywhere. Others were worried that this type of “identification” might devalue emeralds that did not have this “paternity.”
Among the awards and tributes at the ICA Congress were two Lifetime Achievement Awards given to Rajiv Jain, CEO of Sambhav Gems, and Nirmal Bardiya, CEO of RMC Gems. Click here for more on the congress and its speakers.
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