Natural Diamond Vs Synthetic Diamond

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by Raul Sapora

From a scientific perspective, a synthetic diamond has the same chemical composition, the same crystal structure, the same optical and physical properties of a natural diamond. As synthetic diamonds are conceptually identical to natural diamonds, they need to be analyzed and spotted by a gemological laboratory. Synthetic diamond screening is nowadays a major concern of the Jewelry Industry.

Unexpectedly, as far as I am concerned, Ada Diamonds[i], a synthetic diamond distributor, after discovering a few natural diamonds mixed in a synthetic diamonds melee lot, has implemented enhanced screening procedures to further inspect all parcels of melee diamonds to ensure that all diamonds sold are in fact synthetic, not mined and therefore not illicit mined diamonds. Despite it is based on the same principle (synthetic vs natural diamond screening), a whole new and extremely dangerous variable has been imported into the Diamond Trade: protecting synthetic from natural. I believe most of you who read this will smile at this – I did too at a first glance – but it is also easy to realize that a new powerful weapon has been forged and consigned to marketing experts, and if the synthetic diamond industry will have consumers perceive that synthetic diamonds are a better alternative, people will buy them.

The situation is becoming more and more complex. Retailers are in a constant state of great distress: they are uncertain whether they should sell synthetic diamonds or not. On the other end, mining companies are addressing the problem with considerable delay and most probably caught inside the conceptual circle of the same marketing campaign which had decreed their triumph in the past. When Martin Rapaport in his world renowned educated reprimand[ii] to Leonardo di Caprio says that ‘false claims and misleading marketing surrounding the sale of synthetics is having an impact’, I am afraid he forgets to say that diamond itself owes its success to the unrivalled advertising slogan created by Mary Frances Gerety for De Beers in 1948 ‘a Diamond is Forever’, and that claim is disingenuous anyway. De Beers was successful in making diamonds appear rarer than they are, by aggressively restricting the supply of diamonds on the market, and moreover nothing is going to be forever, not even diamonds.

I am a gemologist and Responsible Sourcing Auditor, and those who know me quite well are prepared to hear me pronounce the sentence: “The ethical nature of a gemstone has today as much to do with its social context and its environmental provenance as it has with its optical and chemical properties.” In fact, in my opinion, gemology without Responsible Sourcing is merely a scientific understanding of gemstones, and the world needs much more than this. Gemology, as a matter of fact, is evolving through ethics. Therefore, as a gemologist I have to protect truth, even if truth sometimes can be multifaceted.

Diamond Foundry, a Synthetic Diamond producer who raised a capital of over $100 million from 12 billionaires[iii], including Twitter founder Evan Williams and actor and environmentalist Leonardo DiCaprio, was launched in late 2015, after two years of research and development.” A diamond is a diamond,” says Martin Roscheisen, Diamond Foundry’s founder. “Scientifically it is a tetrahedral carbon allotrope, and it is the same thing whether mined or man-made.”

“Proud to invest in Diamond Foundry, a Company reducing human & environmental toll by sustainably culturing diamonds,” Leonardo di Caprio tweeted.

Apparently, the arguments embraced by synthetic (or lab grown as they like to say) diamonds manufacturers are mainly ethical: to some consumers they seem to be conflict free and socially responsible. That is because synthetic diamond marketers are touting their product to be “conflict-free”, which misleadingly associates all real diamonds with conflict diamonds.

Accusations of exploitation and inhumane working conditions in mines cast a dark shadow over the diamond industry. Mining is also said to be devastating to the environment, due to the amount of energy it requires, the potential for chemical leaks, and the harmful effects that removing large amounts of earth has on local ecosystems[iv]. Some of those arguments are highly deceptive: the world of diamonds, gemstones and jewellery is changing. The legislative landscape, consumer awareness of the problems in the jewellery supply chain and broader civil society groups demanding transparency and disclosure have impacted dramatically on this scenario: nowadays, thanks to Kimberley Process, Responsible Jewelry Council and other initiatives, just a very small fraction of diamonds production is being used to finance wars. Also, it is extremely important to understand that the diamond industry employs an estimated 10 million people around the world directly and indirectly, and also has become the almost entire economy of some specific, otherwise isolated locations, like Botswana and Northern Canada[v]. Another commonly repeated misconception is that diamond mining harms local ecosystems and wildlife. However, diamond mining is perhaps one of the least environmentally destructive forms of mining there is today. Diamond mining uses very few, if any, chemicals, and diamond mines leave a small footprint on local environments compared to other forms of mineral extraction. Most people are unaware of the role diamonds play in bringing real benefits to people in the countries around the world where diamonds are sourced. Nowhere is this more evident than in Africa.

A few facts:

·        An estimated 5 million people have access to appropriate healthcare globally thanks to revenues from diamonds.

·        Diamond revenues enable every child in Botswana to receive free education up to the age of 13.

·        An estimated 10 million people globally are directly or indirectly supported by the diamond industry.

·        The diamond mining industry generates over 40% of Namibia’s annual export earnings.

·        Approximately one million people are employed by the diamond industry in India.

·        The revenue from diamonds is instrumental in the fight against the HIV/AIDS pandemic.

·        An estimated 65% of the world’s diamonds come from African countries.

It is quite evident that synthetic diamonds pose a firm and serious threat to this huge network, while so much has been done and is being done to eradicate unethical implications from the complex jewelry world. As I said already, reactions have been slightly late and perhaps, at least in the early stage, not commensurate to the actual danger.

After almost one century and a half after diamond discovery in South Africa – happened in 1867, when fifteen year old Erasmus Stephanus Jacobs found the Eureka diamond on his father’s farm, on the south bank of the Orange River – and after the end of the De Beers monopoly, seven of the world’s leading diamond companies (De Beers, Alrosa, Dominion Diamond Corporation, Petra Diamonds, Gem Diamonds, Lucara Diamond Corporation, Rio Tinto Diamonds), founded in May 2015, the Diamond Producers Association (DPA): its mission is ‘to protect and promote the integrity and reputation of diamonds, thereby ensuring the sustainability of the diamond industry[vi].

DPA launched an advertising campaign called “Real is Rare,” that adopts a new verbiage on diamond marketing, in which the abracadabra claim “A Diamond is Forever” has been replaced by a narrative that is totally different from the past. The Diamond Producers Association (DPA) announced at the JCK, Las Vegas a few days ago that their 2017 marketing budget will total US$ 57 million. DPA’s Chairman Stephen Lussier commented: “The Board’s decision is a major turning point for the Diamond Producers Association and the diamond industry. All Board Members are aligned behind the goals and plans of the DPA, which is now fully equipped to fulfil its mission of communicating to next generation consumers about the timeless beauty and emotional value of diamonds. We look forward to working closely with the diamond and jewellery trade and with other industry organisations to build a stronger future for our sector” [vii].

The words pronounced from Lussier sound so far away from the place and time in which De Beers was the guardian of the trade and could steadily increase the price of diamonds, thus ensuring that diamonds were a good investment over time.

Is such a potentially huge advertising campaign enough to react to synthetic diamonds? In my opinion the necessary game changer in this dangerous situation are ethics and Responsible Sourcing practices. The only way is ethics, quoting Stacey Hailes’s speech at Birmingham a few weeks ago. It is of paramount importance for consumers to consider what the Kimberley Process Certification Scheme for Rough Diamonds, the Responsible Jewelry Council, the Signet Responsible Sourcing Program are among others doing. Although we are all working towards the full enforcement of these practices, they already had a significant impact on illicit trade in rough diamonds.

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[i] As reported in ‘Is This Lab-Grown Diamond Company Trolling the Trade?’ by Rob Bates, on JCKonline (June 1, 2017)

[ii] Rapaport, ‘Synthetic Diamond Scam’ April 2016

[iii] ‘Why Leonardo DiCaprio is backing man-made diamonds’ by Sophie Morlin-Yron, CNN money ( August 30, 2016)

[iv] ‘A Lab-Grown Diamond Is Forever’, by Chavie Lieber (June 14, 2016)

[v] ‘The History of Lab Grown Diamonds: Value Proposition’, by Ehud Arye Laniado (June 14, 2017)

[vi] Diamond Producers Association mission statement (www.diamondproducers.com)

[vii] DPA ups its Marketing Budget for 2017 – Allocates US$ 57 Million for the Purpose, TJM (June 6, 2017)

 

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Buying and Crying, the Longest Diamond Recession

  
  
Source: Edahn Golan

Author: Edahn Golan

Sometimes, when talking with Sightholders, they have a strong, even passionate opinion about their Sight supplies, prices and the state of the market. This happens at times of instability. At other times, their views are quite moderate, yielding to the market and everything that is happening in it at the moment. However, during a turbulent period, it is very rare when Sightholders remain subdued or accepting of the situation, as it is now.
Currently, it is difficult to assess the size of De Beers’ Sights. The consensus among brokers is that De Beers offered about $600 million worth of rough diamonds, and another $50 million were requested as ex-plan. There was no clear trend to the prices, although many changes were made – both up and down.
Read more at: Edahn Golan website

Diamond Cutters Approaching Era of Disruption

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Source: Rapaport
Author: Ronen Schnidman

RAPAPORT… Diamond manufacturers are entering an era of fierce competition as the looming decline in rough diamond supply is expected to place additional pressure on their already razor-thin profit margins.

“A manufacturer always operates with a benchmark margin, which is the minimum he needs to make a reasonable return on equity,” explains Vishal Doshi, the executive director of the manufacturer Shrenuj & Co. “In spite of all the efficiencies, we have reached the border between the business being either sustainable or unsustainable.”

Some manufacturers are already adapting their business models to cope with this problem, in ways that industry observers believe will alter how the entire diamond pipeline operates in the coming years.

Differentiate or Disappear

However, Dinesh Navadiya, the president of the Surat Diamond Association (SDA), notes that manufacturers have limited options to cut costs and improve margins. While they tend to expand their labor force when rough supplies grow, cutters avoid retrenchments when the profits run dry, he explains.

“Employers never lay off workers,” Navadiya says. “There is a scarcity of artisans in the industry so the question of layoffs does not arise.”

Even during the 2008 financial crisis, factory owners in Surat tried to avoid layoffs, preferring to retain their workers by instituting temporary salary cuts.

Navadiya further dismisses the likelihood that factory owners will increase profits by absorbing smaller or weaker companies to reduce competition. He states that no notable consolidations have occurred in Surat in recent years and that he does not expect significant consolidation to occur in the future.

Consequently, the only way that manufacturers will be able to contend with tightening profit margins is through product differentiation and factory closures, concludes Mike Aggett, the managing director of H. Goldie & Company, a De Beers accredited broker.

Aggett notes that the diamond manufacturing sector is undergoing some consolidation, but this is occurring at a slow pace and largely through companies exiting the industry. He attributes this to the fact that the industry is predominantly made up of family-run businesses that find consolidation more difficult than would purely corporate entities.

“Certainly in India a number of smaller operations have disappeared,” he says. “It will be a slow, ongoing process but the less sustainable businesses will disappear.”

Aggett stresses that manufacturers who wish to remain in the industry will have to focus their efforts on design and branding as a means to improve their profit margins. Consumers are becoming increasingly price conscious, and the only way to make price secondary in their buying decisions is by presenting them with a differentiated product, he explains.

Emanuel Namdar, the general manager of S.N. Asia, a diamond manufacturer, agrees with Aggett and adds that branding is essential because the jewelry marketplace is already crowded and intensely competitive even in emerging markets.

“When you head out to the Far East and pass the jewelry displays on the street, you can see that every consumer interested in buying a diamond ring has hundreds to choose from within a 10-minute walk,” Namdar says. “You must add value through branding. Otherwise, the competition at the consumer level is too fierce.”

Doshi notes that many diamond manufacturers are integrating downstream to achieve that added value and differentiate their product and services.

“The more you can sell diamonds in jewelry, the more your gross margins will go up,” he explained in an interview with Rapaport News earlier this year. “But not everyone can execute it because it’s a different business with a different mindset and a different business model.”

Declining Rough Supply

Most manufacturers who spoke with Rapaport News agreed that manufacturing rough into polished alone is not sufficient to cope with high rough prices and the further forecasted increases.

According to industry consultants at Bain & Company, diamond prices are expected to rise in the long term as supply is forecast to decline from 2018 onward, while demand continues to grow.

De Beers expects that global rough diamond supply will peak at slightly over 160 million carats in 2018 but will plummet to 120 million carats around 2025. This constitutes a 25 percent drop from peak production in less than a decade. De Beers estimates that approximately 146 million carats were recovered in 2013.

De Beers attributes this drop in production to a lack of new mining projects expected to come on stream after 2025 that have potential production volume large enough to impact the overall market. Even if new, large mines are discovered, De Beers noted in its recently published Diamond Insight Report that these would not be developed fast enough to prevent the contraction in supply. The company estimates that the latest generation of large diamond mines have taken on average 22 years to reach production from their initial discovery.

Rough Financing Impacting Pipeline

Bain expects that the demand-supply gap will further squeeze manufacturers’ profit margins at a time when it is becoming increasingly difficult to obtain financing for the working capital needed to reap efficiency gains.

Des Kilalea, a diamond mining analyst for RBC Capital Markets, suggests that it is this lack of financing for rough purchases that will be the final nail in the coffin for smaller, family-owned manufacturing operations.

Kilalea cautions that the entire diamond pipeline has entered an unhealthy situation whereby manufacturers are financing the profitability of the miners and retailers with their bank credit. He predicts that the diamond pipeline will address the problem by evolving toward simpler supply lines with fewer, larger players.

“The longer-term issue is that the miners are not really going to be able to dictate any price to the market because the banks aren’t going to continue financing it,” he says. “Manufacturers will [then] become more reticent to pay high rough prices [in cash] and they will stop extending such crazy credit terms to their own buyers. Why should the guy in the middle be the bankers for the guys on the ends?”

Kilalea expects that the larger manufacturers will address the finance issue by increasingly raising funding from the stock and bond markets to finance their working capital.

Moreover, Kilalea forecasts that as banks reduce their credit lines for rough purchases, the mining and retail segments will be forced to ensure that their profits are not affected if manufacturers go bankrupt.

“The big retailers with financial muscle want to secure the rough and ensure that there are no financial interruptions,” Kilalea says. He explains that retailers are worried that their diamond suppliers may go bankrupt and leave them in the lurch without merchandise. Moreover, the retailers have an easier time of financing their working capital, often paying lower interest rates than their own suppliers.

As a result, Kilalea expects that more large-scale retailers will pursue arrangements similar to those of Tiffany & Co. The New York-based retailer has its own polishing division that procures rough through sight contracts with De Beers and ALROSA and also holds off-take agreements with junior miners Kimberley Diamonds and DiamondCorp to fulfill some of its specific rough requirements.

Bain said in its 2013 industry report that the trend of retailers integrating upstream along the diamond value chain is likely to continue, creating additional pressure on manufacturers as retailers compete for rough with their own polished suppliers.

Survival Not Guaranteed

The consulting company therefore expects further consolidation and integration in the middle of the diamond pipeline as manufacturers seek to maximize their profit margins through efficiencies of scale and scope.

Some manufacturers already predict that there will be consolidation in the cutting and polishing industry even if polished prices rise in the coming decade.

Namdar expects that polished prices will rise significantly in the next decade but diamantaires will need to continually find ways to add value along the pipeline in order to survive and benefit from these higher prices.

“There will be an industry and people will work hard because the ones that won’t work hard won’t be around in 10 years’ time,” he says. “I can’t even guarantee that I will be there, but I know that many good companies that are here today have a roadmap to get there.”

White diamonds versus coloured gemstones

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We publish courtesy of The National
Author: Harvey Jones

Dev Shetty, chief operating officer at Gemfields, the world’s largest producer of coloured gemstones, says the coloured gemstones market is young and fast-growing.

“Diamonds are a rare commodity, but emeralds are 20 times rarer than diamonds,” he says.

Gemfields mines and markets Zambian emeralds and amethysts and Mozambican rubies, and will soon start mining sapphires in Sri Lanka. Mr Shetty says while the South African miner De Beers Group’s brilliant marketing push in the 1960s and ‘70s was hugely successful in building the white diamond market, retail prices have flattened in recent years.

“Diamonds are a mature market with a 200-year history, whereas coloured gemstones marketing only really started in earnest five years ago. Unlike diamonds, the pricing matrix isn’t as defined, but prices are growing rapidly. In July 2009, our high-quality rough emeralds were selling at an average of $4.40 per carat at auction. Now they fetch closer to $59 per carat.”

This means you can get started with much smaller sums of money than in the white diamond market. But you can also spend big. This month, Sotheby’s in Geneva sold an 8.62-carat Burmese ruby for $8.6 million, a record $997,727 per carat.

In 2011, the same auction house sold a 12.01-carat Colombian emerald for $1.44m, nearly $119,000 per carat. By comparison, the most expensive ever white diamond, a 118-carat piece, sold for more than $30m at Sotheby’s in Hong Kong last year, at $254,143 per carat.

“Collectors are investing significant money in coloured gemstones,” says Mr Shetty. “We are working hard to create support and demand, boost consumer awareness and develop the market.”

Gemfields plans to open a sales office in Dubai next year, selling coloured gemstones directly to jewellery manufacturers, retailers and private investors. Wherever you buy gemstones, you must get the right certification, key to protecting your investment.

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Why is Turquoise Becoming Rarer and More Valuable Than Diamonds?

With depleting mines, turquoise, the most sacred stone to the Navajo, has become increasingly rare.

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We publish courtesy of: Smithsonian

Author: Saba Naseem

sky-blue colored stone with a gray and gold spiderweb matrix sits melded into an intricate silver ring with engraved feathers along the sides. This one piece of jewelry may have taken years to make and is worth thousands of dollars, but the story it tells is priceless. It’s the story of a stone, of a culture, a history and of tradition—the story of the Navajos.

FROM THIS STORY

The stone is turquoise, an opaque mineral, chemically a hydrous phosphate of copper and aluminum. Its natural color ranges from sky blue to yellow-green and its luster from waxy to subvitreous. The mineral is typically found in arid climates—major regions include Iran (Persia), northwest China, the Sinai Peninsula in Egypt and the American Southwest. The word itself is derived from an Old French word for “Turkish” traders who first brought the Persian turquoise to Europe. It has graced the halls and tombs of Aztec kings and Egyptian pharaohs, such as Tutankhamun, whose golden funeral mask is inlaid with turquoise.

The importance of this gem lies far beyond its name (Doo tl’ izh ii in Navajo) and characteristics in the culture as showcased in the exhibition “Glittering World: Navajo Jewelry of the Yazzie Family,” which opened last week at the National Museum of the American Indian in New York City. The show features more than 300 examples of contemporary jewelry made by the Yazzie family of Gallup, New Mexico. It is the museum’s first exhibition to explore the intersection of art and commerce and the personification of culture through jewelry. Although turquoise is not the only stone incorporated in the jewelry, it may be the most important.

“Turquoise is a great example of a secular and sacred stone,” says Lois Sherr Dubin, the curator for the “Glittering World” exhibition. “There is no more important defining gem stone in Southwest jewelry and part of the exhibition’s purpose is to expose people to turquoise that is not dyed or stabilized, but is the authentic stone.”

Turquoise is a central element in Navajo religious observances. One belief is that to bring rainfall, a piece of turquoise must be cast into a river, accompanied by a prayer. Its unique hue of green, blue, black and white represents happiness, luck and health and if given as a gift to someone, it is seen as an expression of kinship.

There are some 20 mines throughout the American Southwest that supply gem-quality turquoise, the majority of them are in Nevada, but others are in Arizona, Colorado and New Mexico. According to turquoise expert Joe Tanner, when Spanish conquistador Coronodo took home riches to the Spanish king, the turquoise from the jewelry was traced back to the Cerrillos mine in Arizona, the oldest known in America.

“What the Yazzies work with is the finest from the mines,” says Dubin. “We’re saying it’s more rare than diamonds.”

Less than five percent of turquoise mined worldwide has the characteristics to be cut and set into jewelry. Once a thriving industry, many Southwest mines have run dry and are now closed. Government restrictions and the high costs of mining have also impeded the ability to find gem-quality turquoise. Very few mines operate commercially and most of today’s turquoise is recovered as a byproduct of copper mining.

Despite the lack of mines in North America, turquoise is readily available on the market, with more than 75 percent coming out of China.  However, much of this turquoise has either been filled with epoxy for stabilization or enhanced for color and luster.

Lee Yazzie, known as one of the world’s leading crafters of this artform, prefers his turquoise from the Lone Mountain in Nevada. “I was exposed to the stone in my early life,” he says. “My mother wore it and I remember her working with turquoise to make rings and other pieces. Later, I learned it was considered a sacred stone.”

He set out to find the sacredness of this stone. “One day, I tried to connect to that spirit. I started talking to it and said, ‘I have very little knowledge on how to work with you and need you to give me direction on what it is you want.’ I can testify to you that when I started communicating in this very special way, I discovered why the Navajos considered turquoise to be sacred—everything is sacred in this life.”

This idea of sacred and secular coincides with the idea of preserving tradition through innovation, a common theme in the Yazzie family’s production of jewelry.

“My tradition has always been in my work, no matter how contemporary my pieces look,” says Raymond Yazzie, whose jewelry is distinguished by the quality of his domed inlay work.

“The ability to take traditional forms and make it contemporary is a clear expression of how native people have transitioned from their traditional cultures into a world that is very different,” says Kevin Gover, the museum’s director, “yet they have managed to retain their cultural identity.”

Raymond incorporates turquoise into his designs, although he is better known for his use of coral, which he says is also rare when trying to find good quality.

“The Lone Mountain and Lander Blue mine are coming to be like diamonds,” says Raymond, “with how much you pay for the turquoise.”

Read more: http://www.smithsonianmag.com/smithsonian-institution/exquisite-turquoise-more-rare-and-valuable-diamonds-180953420/#S1RzDACQv1OTlvCa.99
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China demand makes diamond too pricey

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Source: The Economic Times

Author: Sutanuka Ghosal

KOLKATA: India’s expanding middle class may now have to spend more to own a piece of diamond-studded jewellery. Prices of smaller diamonds (10 cents and 6 cents) have gone up due to a surge in Chinese demand.

Vipul Shah, chairman, Gem and Jewellery Export Promotion Council, told ET: “Prices of polished small diamonds (10 cents and 6 cents) have gone up 5% as demand for these categories has risen in China, Hong Kong and the other Asia Pacific regions. But demand for larger diamonds, known as sawn diamonds, has been sluggish as the US and Europe, the major consumers, are not purchasing them in big volumes.

Prices of polished diamonds may go up further as demand is increasing in the Asia Pacific region and supplies are not enough to sustain this demand.” The annual Global Diamond Industry Report says global consumption will help the worldwide value of diamond sales surge from £10 billion in 2011 to £17 billion a year in the next seven years. This boom will be fuelled by the rising middle class in India and China.

Demand from these nations is expected to soon surpass the US consumption. Vijay Jain, CEO, Orra, said: “Gold has witnessed a dramatic rise in price. But diamond has not seen such a huge appreciation . Though there is volatility in diamond prices, it is not as significant as gold. Therefore , the price hike in diamond is more acceptable to the consumer as it has been a steady rise.”

Bachhraj Bamalwa, past chairman of All India Gem and Jewellery Trade Federation, said: “Jewellers will now try to offload older stocks of diamond-studded jewellery before they introduce jewellery with new prices. By that time, consumers will get to know that prices have gone up and they will get prepared to shell out more.” Vinod Hayagriv, MD of C Krishniah Chetty and Sons, said: “If demand comes down, prices of diamond will fall. But that is not going to happen in near future.”

Companies are now looking at introducing products that are affordable to customers and yet have the look of an original high-quality diamond. The Orra CEO said the company has launched the Aquila range of diamond studded jewellery that have the look and feel of a one-carat diamond (100 cents make a carat). “Such items are being bought by aspiring middle class youngsters.

The industry will have to come up with innovative products at a time when diamond prices are rising. This has happened in gold too. Most jewellers have come up with lightweight gold jewellery with a heavy look.”

Ethiopian Government thinks about limiting rough exports

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As Ethiopian gemstone revenues rise, government looks to limit exports of rough

Quietly and under the radar, Ethiopia appears to be developing into a significant force in the gemstone industry. Speaking last month, Ato Tollosa Shagi of the country’s Ministry of Mines reported that over a six-month period the country had earned $288 million from the export of gemstones.

Ato Tollosa was speaking at a seminar held at the Canadian Embassy in Addis Ababa. He told participants that currently some 250 companies have taken licenses to operate mining exploration in the country.

The country is best known for its opal production, which was first included in the Ethiopian federal government’s list of exportable items in 2005. As a result, output increased, both in terms of production and revenue.

In January it was reported that the federal government was considering banning the export of rough opal, in order to persuade exporters to add value locally. It will be the second extractive resource to be banned, after the ministry suspended the export of unprocessed tantalum, a corrosion resistant, rare blue-gray metal.

Ethiopia exported 10,104 kilograms of gemstones during the last two quarters of 2012; 600 kilograms more than in 2011. India consumed close to 80 percent of exports.

More than 2,000 miners, working under the umbrella of 17 associations are engaged in opal mining. There are 200 exporters recognized by the ministry. According to Tekle Yilma, president of the Ethiopian Gemstone Association, almost all gemstones are sold as rough, without any value addition.

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