Ruby Mines Worldwide
Burma – The World’s Largest Source of Rubies
Problematic Trade
Sanctions on Burma
Conflict Gems?
New in Thailand: A Ruby Guide
Ruby Mines Worldwide
The ruby is a red gemstone, a variety of the mineral corundum, is one of the world’s hardest minerals. Rubies have a hardness of 9.0 on the Mohs scale of mineral hardness, and come second only to the diamond which is ranked as 10. The ruby is also the second most expensive gemstone after the diamond. The corundum mineral comes in every color of the rainbow, but only red corundum is called ruby; blue corundum is called sapphire, while corundum in other colors is called sapphire along with the genstone’s color, for example “a yellow sapphire.”
For thousands of years the ruby was considered one of the most expensive stones and India was the land of origin for these gemstones. Burma (or Myanmar, which has been the county’s name since a military coup in the country), is the world’s largest source of rubies, but ruby deposits can also be found in nearby Vietnam (near the Chinese border), Thailand, Sri Lanka, northern Pakistan, Kashmir, Tagekistan, Nepal and Afghanistan. During the 1960’s rubies were also found in Africa and today stones are mined mainly in the continent’s eastern area, in countries such as Kenya, Tanzania and Malawi. In a recent development, rubies were also discovered in Canada.
In the past, “the Black Prince’s Ruby,” which is set in the Queen of England’s crown, was thought to be the world’s most precious ruby, but in the second half of the twentieth century the gemstone turned out to be a spinel.
Burma – The World’s Largest Source of Rubies
Burma produces nearly 90% of the rubies manufactured worldwide, and it is also a world leader when it comes to jade and other gemstones. Often the stones are not polished in Burma, but rather in other countries, such as Thailand, so the customs authorities do not specify their origin.
Burmese rubies have become a brand, and Burmese sourced rubies symbolize quality. Burmese rubies are highly valued in international markets and have been given poetic names such as pigeon’s blood, ox’s blood, London blue, and more. The main ruby deposits in Burma are situated in the “Golden Triangle” in central Mogok, a valley surrounded by high mountains in northern Burma, and a town called Mong Hsu in the country’s northeast sector. This town was the most important source of rubies in the nineties and even today it is one of the world’s most important production sites of the precious gemstone. Locating rubies is sometimes considered problematic because these stones are usually to be found in areas that are rich in uranium.
Problematic Trade
Burma has been under the regime of a military junta since it seized control in 1988. In September-October 2007, the junta brutally suppressed pro-democratic demonstrations held by monks in the country, thereby triggering international protest.
The military junta controls the country’s precious gemstone sector. Working conditions are considered very harsh and have been condemned internationally. In addition, the export of gemstones from Burma is a central source if income for the government: Human rights organizations claim that the gemstone industry brings the regime revenues between $300-400 million annually. The regime holds regular gemstone auctions for foreign traders in which it sells thousands of highly valuable gemstones. The sales generate over $100 million in foreign currency per sale.
Sanctions on Burma
With the outbreak of the demonstrations in Burma last year, the World Jewelry Confederation (CIBJO) sharply condemned the situation there and called on the organization’s members to refrain from buying gemstones from the Burmese government until the UN indicates that a process of democratic reform has been initiated there.
In October 2007, the International Colored Stones Association (ICA) called on its members to cease purchasing gemstones from government sources and state trade organizations. Nevertheless, the organization urged buyers not to impose a sweeping ban on the trade of Burmese gemstones due to the indiscriminate damage that such steps could inflict on non-governmental parties engaged in mining.
Last month President Bush enacted a law in the United States according to which a ban is to be imposed on the import of any gemstones from Burma to the country. This ban is the latest of various economic steps aimed at increasing the pressure on the junta. The United States believes that in the past Burma was able to evade sanctions aimed at hindering the trade in gemstones by laundering the stones through a third party prior to shipping them to the United States. According to reports, the United States is promoting the matter of international sanctions against Burma at the UN Security Council.
Burma seems to be impervious to the new legislation; the sale of sapphires, rubies, diamonds, emeralds, jade and other gems is thriving at Rangoon’s Myanmar Gems Museum among professional buyers and tourists.
Conflict Gems?
In the past, the UN has been known to impose sanctions on countries that sold conflict diamonds in order to prevent trade in diamonds that served to finance insurgents and terrorists. The organization published a list of countries from which the purchase of diamonds and gemstones is banned, but Burma does not appear on it. The famed Kimberley Process was founded by the world diamond industry in order to fight the phenomenon of conflict diamonds, and its efforts have been very successful.
In October 2007, the Sunday Times carried out research that revealed that leading jewelry stores in London were selling conflict gems from Burma, which help to strengthen its brutal regime. A reporter from the newspaper masqueraded as a buyer at Leviev’s flagship store in Old Bond Street in London and asked to see original rubies from Burma. The sales staff showed her a ring valued at about a million dollars, with a ruby weighing 5 carats.
The Leviev Group adamantly denied the accusation and claimed that it had never purchased gemstones directly or indirectly from Burma. In any case, other leading jewelers like Cartier, Harrods and Asprey in London also deal in the controversial stone. Nevertheless, it is important to clarify that the origin of these stones is unknown and there is no clear evidence either way.
New in Thailand: A Ruby Guide
The Thai Gem and Jewelry Traders Association (TGJTA) recently published the first draft of a guide for rubies which will facilitate trade in the gemstone and increase transparency both for the retailer and his customers. The Thai industry’s willingness to accept the document is an achievement in itself at a time when the Thai gemstone marketers are penetrating new consumer markets such as China, India, Russia and some Middle Eastern countries where gemstone knowledge and experience are limited. The guide’s purpose is to enhance consumer confidence in rubies, thereby ensuring the continued development of the Thai gemstone industry.
It is very possible that this is the beginning of the building of a mechanism similar to the Kimberley Process, but with the focus on rubies. As the example of Burmese rubies indicates, the sector must overcome practices and obstacles that could ruin trade in the entire industry. It can only be hoped that the world will understand the need to take action and establish an entity similar to the Kimberley Process, which strives to prevent trade in conflict diamonds. This body must undertake to maintain integrity in the ruby trade and ensure that precious gemstones sold worldwide will not be conflict stones.
Industry leaders would do well to keep in mind that the precious gemstones themselves do not possess inherent ethical attributes: It is people who stain them in an unworthy manner. This must be remembered in order to ensure fair and appropriate trade – it would appear that the industry is now steadily moving in the right direction.
