Focus as ereetstelte sourcing in the coloured gemstone business pAcere tnd Sibi a1) As consumer scrutiny of jewellery's impact on people and the planet intensifies, JNA explores how miners, dealers and jewellers alike are working towards sustainable supply chains and greater transparency and accountability in the sector. hilais42s 8 M32 PI AS AWERAIEI, CINATE MRR ATTRA AL, HB HARSHA MASA ME AAS, HLM Bes TW PAMTRES. | Richa Goyal Siri wat does responsible sourcing of gemstones entail? Does it \ K ] start and stop atthe integrity of the gem material? Is there room for the realities of underdeveloped economies? Some believe the industry uses culture and poverty as an excuse to justify the lack of responsible behaviour But if everything is brushed under the culture carpet how willmatters ever improve? Others bristle atthe mere mention of a mining ‘company, Learning from the pasts vital for future growth and improvement ‘But is using a historical reference in a modern content responsible? ‘The foundation of responsible sourcing must be the integrity of the {gemstone This entails using accurate language to describe the stone, and full disclosure of enhancements or treatments done to improve its appearance ‘Supporting the industry in this first layer of the responsibilty cake are organisations such as CIBJO (The World Jewellery Confederation), which has published guidelines known as Blue Books for Coloured Gemstones ‘and for Responsible Sourcing. The gemstone book details nomenclature for description of stones and disclosure of treatments and provides vital information to aid responsible behaviour. In the Responsible Sourcing Bive Book, CIB, clarifies that The Responsible Sourcing Policy is guidance for responsible business practices and supply chain due dilgence: It is not a system to address traceability of precious metals or gem materials to @ rine source and cannot be deseribed or interpreted as a chain of custody. ‘The US Federal Trade Commission (FTC) has published Green Guides, which provide detailed information related to responsible behaviour The Jewelers Vigilance Committee (JVC) has created an alli-one resource book “Understanding the FTC Guidelines Unlike CIBJO, FTC is empowered by law to punish offenders.The next layer in the responsibilty cake is certification ‘and endorsement. Here, membership in trade bodies such as the American Gem Trade Association (AGTA\, CIBJO, the International Colored Gemstone Association (ICA) and the Responsible Jewelleyy Council (RIC) can help, Fora standalone entrepreneur, comprehensive guideline documents, audits and membership-based organisations can be daunting, To address this, the Coloured Gemstone Working Group (CGWG) created The Gems & Jewellery Platform in 2021. This is @ digital space where anyone can’ ‘access free resources and capacity building tools to learn ‘about responsible behaviour and implement best practices within their business, CGWG was created in 2015 by Tiffany & Co, Swarovski, Richemont, LVMH, Kering and Gemfields, ‘The Muzo Companies joined in 2017, Chopard in 2019 and ‘Audemars Piguet in 2022 Pioneers ‘While many initiatives are recent and stil developing, Certain individuals and organisations have been at the forefront of responsible supply chains for decades. Columbia Gem House wrote its company protocols ‘egarding responsible sourcing 21 years ago after working (on a project in Madagascar for the World Bank related to ‘poverty alleviation via gemstones. When company founder Eric Braunwart ruined one of his Ferragamo shoes stepping into an open sewer in Antananarivo, he realised his one shoe ‘cost more than the average annual income in Madagascar atthe time, ‘Water project by ura Gems Fura GemsiX PDR “That is when we started looking at how cur decisions Could bring more benefits to the cutters and the miners. Supportive supply chain best describes what we do, whether working directly with a miner or an agent, to better understand the condtions under which a gem was extracted. Tracing gemstones means nothing unless you are wiling to act on issues if you see them come up” Braunwart remarked Emerald miner Belmont was also ahead of its time spearheading sophisticated mining initiatives for over four decades, On top of other measures to reduce emissions, it will start operating its own 1. SMW photovoltaic power plant this year, allowing its mine to run on renewable solar energy The company aims to achieve net-zero emissions in the near future. Belmont President Marcelo Ribeiro said, “Although four industry has been taking about sustainability ond traceability for many years, itis very conservative and different markets are in diferent levels of maturity regarding this subject. This isa theme that is just gaining relevance” Gemfields, meanwhile isthe only gem mining company to regularly publish detailed auction results, bringing much needed transparency to the rough gemstone sector. To magnify their chartable work in Aftica, it established the Gemfields Foundation in January 2021 and, that July, introduced 'G-Factor for natural resources, a measure for calculating the percentage of @ nation’s natural resource ‘wealth that is shared withthe host government, which they voluntanly publish ‘According to CEO Sean Gilbertson, Gemfields believes that gemstone resources belong to and are he bintight of the host nation’s ctizens. The miner sees itself a the temporary custodian with a duty to delver the maximum benefit from those resources - monetary, socially, developmentally and environmentally “if one avoids shortcuts, be itn the approsch to health and safety, environmental best practice or full compliance with mining laws, then it is always. going to be more expensive. Our approach has inevitably ruffled the feathers of parties who have benefited historically from the ‘grey areas’ afforded by what has in the past been a complex and ‘opaque’ industry. There remains a strong financial incentive to buy cheap gems from spurious sources, and often the rine of origin isnot known’ shared Gibertson, adding that Gemfields is keen to insti in the industry a ‘mine of origin’ ‘model rather than the prevailing “county-oF origin” Tech solutions Technology and digital marketplaces also faciitate responsible sourcing. The Emerald Patemnty Test by Provenance Proof provides a foolproof mine-to-market chain of custody. Launched in 2017 with Gemfields and Belmont, the process involves immersing rough emeralds at the mine of origin in a solution containing nanoparticles, Which get embedded in the natural fissures of @ rough ‘emerald, surviving the cutting and polishing process thattransforms the rough into a facetted gem, Ths is supported by a digital ledger or Provenance Proof blockchain. Once set and sold ina jewel, customers can bring the jewel for testing to check the mine of origin, But whether technology translates into responsible sourcing depends on the behaviour of the stakeholders involved and the integrity ofthe information provided. Provenance Proof Director Klemens. Link said, “Our latest venture is the Provenance Proof Marketplace, which Gives the gem industry access to buy transparently traded gems. We believe provable transparency and traceability empowers trust: Itis also important for us that the artisanal mining sector is not excluded” Tothat end, many initiatives by Provenance Proof remain freeof-charge. This year, it will he adding more third party verified information on stakeholders and on asset level, for instance, through gemmotogical laboratories, auditing organisations, non-governmental organisations (NGOs) of government authorities, Mining operations Fura Gems, which operates large-scale emerald, ruby and sapphire mines in Colombia, Mozambique and Australi, has fasttracked growth by taking over prevaling mining operations and deposits. ts Australian mine is already an RUC member, and Fura has registered with RUG with the aim of completing certification forthe group and alts other operating sites by the end of 2023 Donna Hourani x Gemfelds earrings IEE Montana in the US has emerged as a key source for responsibly mined sapphires, courtesy of Potentate Mining, Which owns around 90 per cent of the most proific deposit in the Rock Creek region Due to strict environmental regulation and higher costs of a first-world economy, Potentate runs a lean operation and has undertaken several conservation initiatives such a using recycled water to process production and, despite the 3,300 acres at their disposal, not disturbing more than five acres at 2 time without rehabiltation of the land. Potentate's offering of traceable, responsibly mined sapphires is an attractive feature for many buyers. Most Montana sapphires require heat treatment but, for some, the lower risk in comparison to buying from Africa where it is more challenging to trace the stones to the mine and ‘extraction circumstances, outweigh the unusual pale-green ‘and blue-green colours ofthe Montana production. ‘Another venture in the West offering responsibly mined, traceable rubies and pink sapphires is Greenland Ruby. Like rubles from Mong Hsu in Burma, almost all of Greenland's production is heated with borax. Some would immediately label them as glass-fled but there is a technical difference between “heated with borax’ and “glass filed” rubies, as the company explains on its website “1 recently saw top-quality 6mm red ruby beads from Longido, Tanzania” explained gem merchant Jeffrey Bergman SGC SSEF. “They were unheated and cost US$20 per bead, which would have been US$200 if they were from Greenland.” The morale of the storys that stones traceable to 2 responsible source, combined with a good dollop of sales and marketing will fetch a premium, respective of their unconventional colour and treatment. Looking east, Full Gemstones offers responsibly mined peridot from the foothills of China's Changbai mountains. Established in 2015, the vertically integrated company currently supplies peridots from its bulk-sampling ‘operations. Once full-scale mining starts it aims to become a dominant player for peridot. Full has already begun to reshape the demand landscape for peridot, aggressively marketing itsef as a responsible mine Community impact Other mine-to-market initiatives include Moyo Gems, Which offers retailers and jewellery manufacturers. the ‘opportunity to source directly from smali'szale mining communities in East Africa. Virty Gems is an oniine source ‘connecting miners and cutters in Africa to the ndustry and ‘consumer-atlarge. Cristina Villegas, director, Sustainable Markets for the NGO PACT said, “It is important to clarify that gemstone suppliers do not have to create a fancy responsible sourcing programme. They should understand their sources, choose ‘one thing to work on with a mining community then ‘document, commit, grow, and communicate to customers.” Gem Legacy, founded by USbased merchant Roger Dery, works at a grassroots level to provide basic tools to informal and small-scale mining communities and supports schools and skils development in East Africa Nigeria-focused Mina Stones and Zambia-based Jewel ‘of Africa actively support the gemstone community in their respective countries, “Most artisanal miners have traditionally been villagers «discovering gem outcrops whi on hunts afterte harvesting season is over and before the planting season begins, revealed Jewel of Africa Co-Founder Rashmi Sharma. ‘We are committed to ensuring that the communities we work with benefit from our purchases and that our activities ‘comply with laws and regulations”Jewel of Africa is involved in a variety of chartable programmes, including a skils development iniative in cutting and polishing gems for underprivieged refugees with the United Nations High Commissioner for Refugees (UNHCR), Mina Stones Founder Lotanna Amina Okpukpara added, “By providing technical, financial and social inclusion support, we ae helping miners and. their communities recive equitable valve for ther resources and thsi tthe core of our sourcing process” Harsh realities For the vast majorty in the industry though, the incentive to buy cheap ‘gems wil always be strong, perpetuating a system of getting the lowest price tall costs and doing litte or nothing to improve conditions throughout their supply chain. This traps people in poverty when communities are seling out ‘of desperation Ng aaTiTEaacebas Responsible sourcing is nota silver bullet. Marcena Hunter, senior analyst Cee eee cern, with Geneva-based NGO Global intatve, said, “On the mining side, one has GembeldstemiearF mumiiaieniremirin 10 look beyond the legality of the operation to whether it transiates into local development gains. On the fi side, the few artisanal mining-focused initiatives that exist in the industry are benefiting a lited group of people. it is. very smal portion of the market and will nt move the needle inthe larger scheme of things” Insistence on traceability can sometimes push miners ‘ut of the supply chain due to lack of education and access to technological tools, empowering criminal actors, she added Another challenge the industry faces is dealing with courtries where, for mary, undervaluation of goods at the time of export or smuggling of rough gemstones has become the norm. Responsible merchants looking to import gems at fair values and via legitimate channels find themselves at a disadvantage. Independent geologist and mining consultant Zoe Herimalala Tsiverisoa, whois based in Madagascar, said, “Clients do not do due diligence regarding the items they buy, so sellers do not care about doing things properly. Responsible sourcing is possible and being carried out by select partnerships inthe region” Seasoned gem merchant Guy Clutterbuck who has spent considerable time living and working alongside miners and merchants in Afghanistan, Rough emerald grading at Gemfelds'Kagem Brazil, Asia and Arica, encourages the gemstone sector to eam from the ‘emerald minein Za wine industry, which incorporates the story of the vineyard and the terror of GembeldsAMEEPETE-F MISSA the host region in its narratives. For wines, this detaled level of storyteling is ESHEETS? not considered marketing but an essential element to continuously attaining ‘a higher valu, he noted “With an ever-shrnking world, customers wil increasingly want to know not only the geographic origin oftheir gemstone but the entire story related to its journey from mine to market. Responsible sourcing is no longer @ choice but a necessity’ Cluterbuck said At some level, it seems as if responsible players in the industry are ‘working within ther silos. The large-scale mining companies and their auction partners are in one bucket and members of the RJC and other associations have their own ecosystems. Dotting the rest of the landscape are niche mine tomarket projects created by gem merchants, manufacturers and retailers that suppor @ responsible story for their customers. Sixteen years eg0, barring one or two exceptions, none ofthese existed Border restrictions during the pandemic and higher travel costs have increased the industry dependence on reliable channels for responsible sourcing. Those pondering their next move can reflect on Villegas’ words, “There are many paths to posttve social impact. Find out what countries your supply is coming from, then the specific region, and try to start there Emerald sorting at Belmont minein Braz 9 BmementirwnaresyiLe Responsibility begins with your own supaly chain: ieee Nee2 Afiest 2hmpse of aroush emerald at Gemfields’ Kagem mine in Zambia: Malawi rutated am dsEMUETE FMI OGINE; Vir Gor MRM ETE RAR, SCH CT MIRE RI AB, FICE ISN, Th IGemfield hopard) 0% RARBRAR JNA Marci/Apet 2023BD, EREOY 1A mt Rm ROWCAAMAWRORATEXHES 18 (8 BAER. Provenance Proof jovenance Proof Marketplace 2/8 HRB BMTE. 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TRACHRARATEOR, MERAOR, FH RMAIB MLS, PEE HAMEL CA RADERTT HH” EB a, Bre “age Donna Houran'x Gemields emerald rings HBR About the author # A677 Richa Goyal Sikri began her gemmological journey in 2014, traveling and curating trips to gemstone mines, manufacturing Centres and artist studios to become a discerning collector She obtained a GIA diploma in coloured stones, began researching {Jewellery history and started documenting her bespoke experiences and learnings on Instagram. in 2017, she officially embarked ‘on her second career as a journalist, storyteller and creative strategist. Richa Goyal SiniZ:2014= 7G T MAE ERLM, FR NTARUBTLO, MOP OMEARL PEAT, YT — OHA UC MER OY TOOL ELIE FGA HEL, (901 F8hfinstagram + ia RMova ts ASH SLR. 2017%, WET A 7 see — HAMMERS. Nee, SB ios A