GReeN RevolTIU oN · emerald sector. Participation and support of the event came from stakeholders in the global gemstone and jewellery industry, as well as trade organisations and

The first global symposium devoted to emeralds was held this past October in Bogotá, Colombia. Drawing praise

from attendees and speakers alike, the three-day event addressed the challenges and opportunities faced by

the industry, along with heated discussions on a number of topics, including one not often discussed in public.

CYNTHIA UNNINAYAR reports.

Colombia hosts the first global emerald meet

GReeN RevolUTIoN

42 solitaire INTERNATIONAL NOVEMBER 2015

de Grisogono necklace in white gold set with seven cabochon Colombian emeralds.

The first global symposium devoted to emeralds was held this past October in Bogotá, Colombia. Drawing praise

from attendees and speakers alike, the three-day event addressed the challenges and opportunities faced by

the industry, along with heated discussions on a number of topics, including one not often discussed in public.

CYNTHIA UNNINAYAR reports.

Colombia hosts the first global emerald meet

GReeN RevolUTIoN


de Grisogono necklace in white gold set with seven cabochon Colombian emeralds.

rganised by Fedesmeraldas—the Colombian Emerald Federation (CEF)—with support from the country’s

emerald-related bodies, including the ministry of mines and energy, the First International Emerald Symposium took place from October 13 to 15 in the nation’s capital Bogotá. Attracting some 200 local attendees and more than 150 international participants, speakers at the conference addressed a variety of issues relating to the emerald trade, not only in Colombia, but around the world. Among the topics were resource management, traceability, ethics, manufacturing, treatments, certification, nomenclature, technology, consumer education, marketing and branding.

It was the first time that producer countries came together at a high-level international gathering to discuss the challenges and opportunities facing the emerald sector. Participation and support of the event came from stakeholders in the global gemstone and jewellery industry, as well as trade organisations and private and governmental delegations from the US, China, Zambia, Brazil, Russia, and Afghanistan.

This article takes a brief look at some of the subjects covered at the symposium. For a detailed list of the speakers and their topics, see worldemeraldsymposium.com.

After the opening ceremony, Dr. Maria Isabel Ulloa, vice minister of mines, provided extensive background on the Colombian emerald industry, stressing that the types of mines—large, medium, small, and survival—must be treated differently. Her main point, however, dealt with transparency. “Currently, some 63% of mining activity is carried out without meeting legal requirements or paying taxes,” she said. “It is imperative to formalise the sector.” One way the government is doing this is to provide support to “formalised” companies. Another is a system of transparency that requires each mine to have government certification, detailing where the gems were mined. If a company cannot prove the provenance of its minerals, the gems may be seized. In addition, the government is mandating that mine owners respect environmental and safety guidelines. “We are facing difficult times,” Ulloa added. “The Colombian emerald industry is at a milestone, and must be inclusive and competitive. International players are arriving and raising the bar for

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The Plaza de Bolivar in the heart of Bogota features the Primary Cathedral of Bogota and the Casa de Nariña (Presidential Palace), extreme right. © Cynthia Unninayar.

Colombia was the host country for the First International Emerald Symposium. © CEF

Colombia. We support them, and our emerald industry must adapt to rigorous international standards.”

Later, Dr. Santiago Ángel, president of Asociación Colombiana de Minería (ACM), declared, “Colombia is open for business.” The mining sector is the driving engine of Colombia’s economy, with “coal being the largest sector, and metals and minerals next,” he explained, adding that mining provides much-needed employment in rural areas. He also reiterated the vice minister’s comments that Colombia welcomes and supports big players to the emerald scene such as UK-based Gemfields and Minería Texas

Colombia (MTC, a division of US-based Muzo Emerald Colombia, formerly known as Muzo International). “They are important to our economy, and bring investment and higher standards to our industry.”

Corporate social responsibility Corporate social responsibility (CSR) featured in many of the discussions. Charles Burgess, director of MTC, manages the strategic business and operations of the famed Muzo mine, formerly known as the Tecminas/Port Arthur mine that was owned by the infamous “emerald czar” Victor Carranza. Burgess’ talk centred on the arrival of MTC at a time when the Colombian


(Above) Maria Isabel Ulloa, vice minister of mines, provided extensive background on the Colombian emerald industry and what the government is doing to ensure a good future. © CEF. (Top right) Charles Burgess, director of MTC, manages the strategic business and operations of the famed Muzo mine. © CEF

Some 200 attendees from Colombia and 150 overseas visitors participated in the symposium. © CEF

Muzo Emerald 6.55 carats.

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government was ready to modernise its emerald industry and raise it to international standards, along with promoting emeralds and encouraging CSR.

“Since acquiring the legendary mine six years ago, the Muzo companies have invested more than $50 million to modernise the mine with the latest mining extraction methods, technology-driven craftsmanship, transparency, mine-to-market traceability, and a safe and fair employment environment in the Boyaça region,” said Burgess, adding that the Muzo companies provide more than 800 jobs, of which nearly 500 are in the communities surrounding the mine. Its employees also receive health insurance and other benefits. The company’s commitment to the community at large involves a number of initiatives, including a clinic that provides care to 1,200 people.

Jean Claude Michelou, the international coordinator of the event and the co-chair of the ICA Fair Trade and Ethical Mining Committee, reported on the traceability of coloured gems in general with an update on ongoing initiatives and how the industry is moving forward. Along with an overview of the gemstone industry, he stressed that consumers want to have confidence in their purchases, which is helped by proper identification of the gems and their origin, and the knowledge that they are extracted

in an environmentally friendly and ethical manner. He elucidated on the chain-of-custody initiatives proposed by some governments and organisations like the Responsible Jewellery Council (RJC), as well as private initiatives from companies such as Gemfields, the Muzo companies, and TrueNorth Gems among others.

A senior advisor to a project under the auspices of the United Nations’ Interregional Crime and Justice Research Institute (UNICRI), Michelou also talked about the organisation’s goal of reinforcing international efforts to counter trafficking of precious metals as well as a project that aims to establish an instrument in the form of certificate-of-origin and a corresponding tracking system for coloured gemstones based on the improvement of environmental, social and governance (ESG) performance along the supply and value chains.

Sean Gilbertson, executive director of Gemfields, the seventeenth-largest mining company listed on the London Stock Exchange, discussed the company’s responsible mining and transparency initiatives as part of its policy to acquire gem production around the world. Specifically, he spoke about Gemfields’ involvement in modernising the Kagem emerald mine in Zambia (where 1 gram of emerald is found for every 5 million


Along with an overview of the gemstone industry, he stressed that consumers want to have confidence in their purchases, which is helped by proper identification of the gems and their origin, and the knowledge that they are extracted in an environmentally friendly and ethical manner.”One of the discussion groups answered frank questions about theft, attacks and robberies

in the mines, (from left) Jean Claude Michelou (ICA), Oscar Baquero (Fedesmeraldas), Gerry Manning (AGTA), Sean Gilbertson (Gemfields), and Charles Burgess (Muzo). © CEF

Piaget’s master craftsman places this 26-carat Colombian emerald in a four-pronged platinum setting.

grams of rock removed); developing ruby mining in Mozambique; searching for sapphire, ruby and emerald in Madagascar; and sourcing rough sapphire and other gems in Sri Lanka among other locations. Gilbertson also discussed the company’s recent move into Colombia with the purchase of 70% of the Cosquez mine, as well as the acquisition of a number of mining titles covering 20,000 hectares in the general Muzo and Quípama districts.

The world of fine emeraldsEven though Colombia was the host nation, other significant emerald deposits around the world were topics of discussion. Dr. Gaston Giuliani, research director at the Institute for Research and Development (IRD), Paris, gave an overview of the major emerald deposits, while gemmologist Warren Boyd, president of R.T. Boyd Ltd., Canada, provided a detailed look at emerald mining in Russia.

Gary Bowersox, renowned gem hunter, president of US-based GeoVision, and an expert on Afghan emeralds, highlighted the small-scale mines in the Panjshir Valley. He concluded that the quality of Afghan stones rivals that of Colombia and Zambia.

Resource-rich Brazil is the world’s third-largest producer of emeralds after Zambia and Colombia. Marcelo Ribeira, director of the Belmont mine, located in Minas Gerais, highlighted the mechanical sophistication of the mine, as well as the company’s dedication to social and environmental responsibility. In addition to investments in geological research, Belmont has set up cutting facilities to ensure traceable mine-to-market emeralds.

“Standards and Protocols for Emerald Analysis in Gem Testing Laboratories” was the topic of a presentation by Dr. Thomas Hainschwang of GGTL Laboratories, Liechtenstein, who summed up various identification techniques and types of treatments. He also explained in detail how a protocol of complex testing can determine the most likely geographical origin of emeralds.

Marketing and brandingThe Platinum sponsor of the Emerald Symposium, Muzo Emerald Colombia held a soft launch of its new MUZO brand that “will transmit to the world the true meaning of Muzo emeralds,” said Burgess. “It will be the communication vehicle to show to the consumer, in every sense, the best product


Gary Bowersox, president of US-based GeoVision, offered insights into the fine emeralds that are produced in Afghanistan. © CEF

Warren Boyd, president of Canada-based R.T. Boyd Ltd, talked about the emeralds that are still mined in Russia. © CEF

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of its kind not only for its beauty, colour, size and quality, but for its traceability, based on transparency, ethical practices, development of the workforce, social responsibility and commitment to the growth of Colombia.” (The official launch is scheduled for BaselWorld in 2016.)

Branding expert, David Lightle, principal at Ohio-based VMA Worldwide, spent several years in Colombia involved in branding efforts of the country itself, where he and his team changed the dialogue about the nation in the eyes of the world. During his presentation, Lightle emphasised, “Brands do not have life cycles. They are bigger than products, and having a brand image creates long-term, sustainable and competitive advantages.” He also commented that emeralds teeter on commodity status. “They are not reining in the kind of value that they should, due mainly to the lack of strong brand players in the global market.” Speaking specifically about Colombian emeralds, he stated that “the collective effort of the local ‘mothergem’ brand is a good start, although it remains to be seen how it will be marketed. Also to be seen will be the contributions of Gemfields and Muzo.”

Sean Gilbertson of Gemfields also discussed various marketing initiatives, with Gemfields positioning itself as the world’s leading supplier of responsibly sourced coloured gemstones, and more than just a mining company—one that is a “pioneer at an exciting new frontier where mining, marketing, exploration and ethics meet.” Its branding efforts also involve a consumer focus by forming partnerships with jewellery designers around the world, as well as appointing Mila Kunis as a brand ambassador.

Discussing the importance of social media in marketing and branding was celebrity jewellery designer, Erica Courtney. She spoke at length about trends in gemstones and jewellery and ways that designers can use social media to increase brand awareness, and get the message across to both retailers and consumers.

Lively group discussions The panel discussions drilled down on topics of crucial interest to the emerald community. The topic drawing the most, and sometimes contentious, comments revolved around nomenclature that labs use when listing the degree of treatments for inclusions, i.e. “minor,” “moderate,”

David Lightle, of VMA Worldwide, offered his expertise on global branding and the obstacles faced by the emerald industry. © CEF

They are not reining in the kind of value that they should, due mainly to the lack of strong brand players in the global market. The collective effort of the local ‘mothergem’ brand is a good start, although it remains to be seen how it will be marketed. Also to be seen will be the contributions of Gemfields and MUZO.”

“significant,” etc. Since the “normal” state for most emeralds is to have moderate inclusions and thus moderate oil/resin/wax treatment, the suggestion by some was made to change the “moderate” designation to “normal.” This would—many postulated—help saleability. As is the case with other gemstones, namely sapphires and rubies, the terms used for the type of colour also incited lively debate, with some labs using labels such as “vivid green,” “intense green” and others. No conclusions or consensus were reached on either topic and clearly the dialogue will continue for some time.

On a different note, after panellists in another group voiced opinions on a number of topics ranging from procedures to taxes and from traceability to standards, a concern was brought up about theft in the mines. In response, Burgess declared, “It is no secret that robbery and theft are common along the supply chain. I am not talking about poor miners, but well-organised criminals in large-scale operations.” He referred to two deadly attacks on tunnels in the Muzo mine complex by well-armed elements, requiring the help of the police and army to quell the situation. The latest attack was in May 2015, when anywhere from 1,000

to 3,000 people, according to different estimates, stormed the mine for at least two days, until the police finally gained control. According to some industry players, losses were in the millions, with numbers ranging from $12 million to as high as $42 million.

As Gemfields begins its move into Colombia, Sean Gilbertson stated that they are learning a lot about conditions in the nation, which are different from their operations in Zambia. Referring to the Kagem mine, he was open in declaring that Gemfields loses 15-20% of turnover because of internal theft. “Outside elements either pay or pressure mine workers to steal for them. The stolen gems are then sold on the black market for less than their value.” In a pragmatic approach to this problem, Gemfields buys back the gems on the black market, although it separates the repurchased stones from its other material. In summary, Oscar Baquero, president of Fedesmeraldas, stated, “This is a complex issue, and we need to have all channels open to solve the problem.”

In principle, a second global emerald symposium will be held in two years, although nothing definitive was announced. Stay tuned… n

During Erica Courtney’s speech on branding, she explained how she promotes her Zambian emerald ring (seen below) on social media. © CEF

Lively discussions on nomenclature relating to emerald treatments and colours involved both the panel and members of the audience. (From left) Jean Claude Michelou (ICA), Kenneth Scarratt (ICA Lab), Dr. Thomas Hainschwang (GGTL Lab), Sean Gilbertson (Gemfields), Dr. Adolf Peretti (GRS Gemlab), and German Sanchez (emerald dealer, Colombia). © CEF


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GReeN RevolTIU oN · emerald sector. Participation and support of the event came from stakeholders in the global gemstone and jewellery industry, as well as trade organisations and