Sustainability is a common language across industries in the world. The growing quest for transparency, corporate social responsibility and best business practices from millennial consumers has become a defining issue in the jewellery supply chain. Hong Kong Jewellery has talked to Adrian Banks, product director of Gemfields, on the significance of sustainability for the gemstone heavyweight, its recent mining activities and consumer confidence.
“Sustainability is hugely important. Transparency and integrity are at the core of our gemstone business,” said Banks. According to him, responsible sourcing means the gemstones are extracted from the mine using best practice principles throughout the processing system, while the community and the country are benefited from the sales of the gems.
Now operating a significant emerald mine in Zambia, ruby mines in Mozambique and an amethyst mine in Zambia, Gemfields attaches great importance to repatriation of revenues to the mining community. “We lead numerous projects for local communities. We have built schools in Zambia and Mozambique, and provided employment for thousands of people with training. The salary we pay is well ahead of government’s minimum wages. We pay over 20 percent of our revenues to the government of Zambia and Mozambique in taxes,” Banks said. Gemfields is the biggest tax payer in Cabo Delgado Province of Mozambique.
On the health front, Gemfields established a mobile health clinic in Mozambique last year, providing over 25,000 patients with medical care and medicines. Another initiative is to enhance farming techniques in the country. “After the introduction of these programmes, the output has doubled. The farmers then sell their products to our mines which provides them with a stable market,” Banks said.
When reviewing the recent production of emeralds, Banks said last year was challenging at Kagem in Zambia, where operations didn’t produce the quantity of high-quality emeralds that they would have liked. Since November production has improved and the outlook for 2018 is positive.
Another source of emeralds is being developed in Ethiopia. Exploration is done by Web Gemstone Mining Plc of which 75 percent was acquired by Gemfields. Banks said exploration is planned to continue for another 18 months.
Production of ruby is more reliable in Mozambique, said Banks. The Montepuez mine is an open-pit ruby mine. The production has been consistent. “Last year, we held two ruby auctions that generated over US$50 million each. We are expecting a similar production profile this year,” he said. According to Gemfields, many of the rubies found at the Montepuez mine have similar qualities to that of the well-known Burmese ruby.
The Kariba amethyst mine in Zambia produces some of the finest amethyst in the world. It is also one of the world’s largest amethyst producers. “Most of our amethyst is exported to China,” said Banks.
The price of emeralds remained relatively stable last year, with a slight increase in finer qualities, according to Banks. “For rubies, from the auctions held last year, we saw a significant increase in price most grades on offer from the June to November auctions.” He foresees the ruby price to be at least stable for the next auction which is likely to be held in June 2018.
Adrian Banks joined Gemfields in 2009 when he introduced the auction system in the year. “We started the first emerald auction in July 2009. Next year will be 10 years down the line,” he said.
“The auction system in itself has worked extremely well. We’re now looking into various technologies to make the system more streamlined. We also review the locations. At present, what we have found is the best for us,” said Banks. Gemfields auctions are held in Singapore, Zambia and India.
Going eastwards, Banks said China is a very important market for the gemstone industry as Chinese consumers understand and appreciate the beauty of gemstones. He said: “China is the most important market for our Mozambican ruby.” Nevertheless, he drew special attention to the importance of consumer education, especially on gemstone treatments.
“China is quite a new market which needs more education on the varying quality of emerald and ruby. Consumers should understand that the majority of gemstones will be treated in one way or another. Treatment is not a bad thing as treatment enhances the beauty of a gem. It is however important that all treatments are fully disclosed to consumers,” he said.
A gemstone veteran, Banks has witnessed the increasing interest from customers in the origins of their gemstones as well as reliable sources, which has a huge impact on consumer confidence and purchasing decisions. “Traceability has become an issue. Paternity testing such as Gübelin’s DNA solution is going some way to make this possible. We are proud to partner with the company to make it a reality. This will revolutionalise the industry,” he said.
← Back