Professional Documents
Culture Documents
AND DISTRIBUTION:
A QUARTER CENTURY OF CHANGE
Russell Shor and Robert Weldon
During the past 25 years, the corundum market has been transformed from one of medium-
to high-priced gems to one that encompasses nearly all price ranges. This transformation was
caused by the discovery of a number of large deposits and the development of treatment process-
es that enhanced the color and clarity of huge quantities of previously noncommercial sapphire
and ruby. More recently, however, controversial treatments have undermined confidence and
prices in some material, while political events and press scrutiny have affected the supply chain
for rubies and sapphires from localities such as Myanmar and Madagascar.
1999, for example, concerns over the environmental supplied goods to the ruby and sapphire market over
and social impacts of Madagascar’s sapphire rush the last quarter century, as detailed below.
made international headlines. More recently, a This section is organized into three parts: The
number of countries have enacted sanctions against four traditional ruby and sapphire sources, most of
Myanmar, historically the world’s most important which have been mined since antiquity; the newer
source of high-quality rubies, because of that gov- major producers that have been developed within
ernment’s repressive practices. the last 25 years; and lesser sources, several of
This article reviews all of these developments, which hold promise to be commercially important
and provides results from two recent comprehen- in the future.
sive studies of retail colored stone demand, to pro- A caveat: We have made every effort to include
vide a mine-to-market analysis of corundum over production figures for the individual localities
the last quarter century. where such information is available. Unfortunately,
most such data are notoriously unreliable or diffi-
cult to interpret, even when coming from mine
GEM CORUNDUM SOURCES owners or official government sources. For example,
AND PRODUCTION quantities of rough extracted are generally reported
The locality of origin of a gemstone can exert a in kilograms (1 kg = 5,000 carats) with few specifics
powerful influence on price and demand because of on the quality of the material. And export data,
the unique attributes a specific source may impart which rarely detail various gem types, are often
to the material, from physical characteristics such skewed toward the financial advantage of the
as a distinctive color and inclusions, to the history, exporter (i.e., often less than the actual amount if
lore, and legend of certain gem-bearing regions. there are export taxes) and do not take into account
Several sources, traditional and newly found, have goods illegally smuggled out of the country (a com-
Figure 3. This “pigeon’s blood red” Burmese ruby Figure 4. The Graff Ruby, an 8.62 ct Burmese
(~1 ct) and Old Mine cut diamond ring was manufac- stone set into a ring by Bulgari, sold for a record
tured circa 1910. After the 1885 annexation of Upper $3.64 million—about $422,000 per carat—at the
Burma by the British, rubies began to enter the Christie’s February 2006 auction in St. Moritz.
European gem markets in earnest. Courtesy of Frank Photo by Denis Hayoun/Diode SA; courtesy of
Goodman & Son, Los Angeles; photo by R. Weldon. Christie’s International.
Mong Hsu. In late 1992, rumors of a new discovery 2009). The primary reason is that easily accessible
of corundum in Myanmar began circulating in the areas of the deposit have been exhausted, but the
trade, and vast quantities of gems appeared in government reportedly has also relocated large
Bangkok, though the color tended to be much lower numbers of workers to other mining projects such
in quality than that of traditional Mogok material as for gold and uranium (Helmer, 2008).
(Peretti et al., 1995). Mong Hsu quickly became the
world’s largest supplier of corundum during the Nanyaseik (Namya). In 2001, a rumor circulated
early and mid-1990s. Articles reporting on and among gem dealers regarding a gem rush in an area
describing the new material—vastly different from near Hpakant in Shan State (Peretti and Kanpraphai,
that of Mogok—began circulating in trade journals 2003). It soon became a short-lived new source of
and scholarly publications (e.g., Kane and Kammer- extremely fine-quality rubies—as well as sapphires
ling, 1992; Peretti et al., 1995; Schmetzer and and spinels—not unlike those from legendary
Peretti, 1998; Drucker, 1999b). In fact, the gems Mogok. Experts say most of the material was quite
from Mong Hsu were so different from the Mogok small, but with rich, “true” colors not affected by
material that the phrase Burmese ruby acquired a gray or brown secondary hues (W. Larson, pers.
qualifier in the trade: Mogok or Mong Hsu. comm., 2009). Stones in the 2–5 ct range were
Mong Hsu’s corundum was often difficult to uncommon, and fine 10+ ct gems were very rare
characterize because the crystals had unique color (Peretti and Kanpraphai, 2003). The area was
zoning: transparent red outer rims with cores that exploited heavily between 2001 and 2004, but pro-
typically appeared violet to dark blue (e.g., figure 5). duction has slowed to a trickle since then (Hlaing
Heat treatment improved the salability of this and Win, 2008).
material by converting the violet and dark blue
cores to yield uniformly red stones (e.g., figure 6). It Political Aspects. In recent years, Burmese ruby has
also produced characteristic features, such as inclu- acquired some negative socio-political connotations,
sions of white particles easily seen with magnifica- particularly in the United States and Europe. The
tion. Note, too, that Mong Hsu rubies typically con- source of this is the well-documented human rights
tain cavities and fissures that may be filled with abuses—of ethnic minorities and common citizens
glass during the heating process (Hughes and alike—committed by Myanmar’s ruling generals
Galibert, 1998). A similar process (with borax as a (see, e.g., U.S. Department of State, 2009). Further,
flux) had been widely used decades earlier during many of these abuses have been linked to the gem
the heat treatment of Burmese and Thai rubies trade (Jewelers of America press release, 2007;
(Kane, 1984). Newell and Gadner, 2007). It has been widely report-
Since 2004, production from Mong Hsu has ed by the same sources and numerous mass media
dwindled considerably (R. Schluessel, pers. comm., (see, e.g., Associated Press, 2007; Walt, 2007) that the
Thailand. Mining and Production. Accounts of 1987, geologists reported that the Bo Phloi deposit
rubies from the Kingdom of Siam, as Thailand was was much more extensive than previously believed,
called until 1949, date back to the 15th century, and and the opening of several more major mines made
figure importantly in reports from European travel- the region one of the world’s largest sources of blue
ers and traders who visited the area between 1600 sapphire. Production began to decline in the mid-
and 1800 (Hughes, 1997). Historically, most of these 1990s, with less than 200 kg recovered annually
early accounts referred to the area that straddles the from 1995 through 2005, a tiny fraction of the world
border between present-day Thailand and total (Yager et al., 2008). In recent years, only one
Cambodia. large Thai-based concern, SAP Mining Co., has con-
Although the sensational quality of Kashmir tinued to operate in the Bo Phloi area, along with
sapphire would overshadow the traditional scattered smaller operations elsewhere in the coun-
Siamese goods, the kingdom was still regarded as try (e.g., figure 10).
the most important source of blue sapphire, by Thailand’s ruby production, mainly in Trat
quantity, until 1907 when it was forced to cede its Province, was sporadic through the early years of
eastern provinces, including Pailin (now in the 20th century. In the 1960s, production rose
Cambodia), to the French colonial regime in what steadily to make Thailand a leading source until the
was then Indochina. In the 20th century, other Mong Hsu discovery. Like much of its blue sap-
areas of Siam were opened to corundum mining, phire, Thai ruby tended to be darker than what
and by the mid-1930s, Siam was reportedly pro- most dealers consider optimum, though heat treat-
ducing half the world’s sapphires (Gravender, ment could often lighten the color by removing pur-
1934). ple or brown secondary hues (Nassau, 1981; Keller,
Mining apparently halted in the region during 1982). Production from the three mining areas in
World War II and its aftermath. It eventually Trat peaked in the 1980s, as mechanized operations
resumed on a small scale until 1978, when a large took over. By the 1990s, most of the known
deposit was discovered that yielded dark blue colors deposits had played out, with production estimated
after heat treatment. Not quite as dark as Australian at 15–30 kg yearly through 2005 (Hughes, 1997;
goods (see below), most Thai sapphires found their ICA 2006 World Gemstone Mining Report, 2006;
way to the better end of the commercial market Yager et al., 2008).
(Hughes, 1997). The deposit, located close to Bo
Phloi in western Thailand, attracted several large, Thailand as a Gem Cutting and Trading Hub. Even
mechanized mining operations. Nine years later, in as the country declined as a gem producer, mem-
and thus somewhat lighten the stones, making the tion declined by some 60%, from an estimated
Australian material more commercially viable 13,000 to 5,500 kg (Yager et al., 2008). However, a
(Coldham, 1985; Hughes, 1997). number of areas remain open to “fossicking” (hand
Thai traders established buying operations in digging), and in late 2007 the Queensland govern-
Australia in the late 1960s, spurring expanded pro- ment indicated that some mechanized production
duction. In addition to restarting the Anakie fields, might restart at Lava Plains (Neville, 2007).
miners began working Invernell, a known sapphire Ruby was mined along the Gummi River north
source in New South Wales that was subsequently of Sydney between 2004 and 2006, with the mine
discovered to be part of a much larger deposit later operator, Cluff Resources, reporting that 440,000
called the New England gem fields. A third area, carats of cabochon- and some facet-grade material
Lava Plains, in Queensland, produced significant were extracted. The company suspended operations
quantities of sapphire for several years from the late early in 2007 after local governments declined to
1980s until 1993. The introduction of modern, approve a request to extend mining operations to a
mechanized sapphire mining meant that large quan- broader area (Cluff Resources, 2007).
tities of material entered the market in a short peri-
od (Hughes, 1997). During the 1970s and through Madagascar. Sapphire. Madagascar has developed
the early 1990s, Australia produced an estimated into the most important source of sapphire, blue
70% of the world’s sapphire. The best qualities and fancy colored, within the past two decades (see,
were often separated out and marketed as “Thai,” e.g., figure 12). Corundum finds there were minor
“Sri Lankan,” or “Cambodian” (Beard, 1998). until 1993–94, when attractive blue sapphires were
Production from Australia peaked in the mid- found in the Andranondambo area of the island’s
1980s but remained high through the next decade as southeast corner. The deposit proved lucrative, with
smaller deposits, particularly in the New England some 1,200 kg exported to Thailand annually for
area, in addition to Lava Plains, were discovered and the next three years and a number of 15–20 ct
worked to exhaustion after a few years (“Australian stones cut. A very high percentage of this material
sapphires,” 2005). However, rising mining costs and responded well to heat treatment, and some of the
tough environmental restrictions, coupled with the best-quality goods were compared to Kashmir sap-
continued low prices, discouraged further explo- phire (Schwarz et al., 1996).
ration to replace areas that had been played out The first truly major find came in 1996, in the
(Beard, 1998). Antsiranana region at the extreme north of the
From 1995 to 2005, Australia’s sapphire produc- country. Within two years, the area became one of
Greenland. The world’s largest island, Greenland, (ICA 2006 World Gemstone Mining Report, 2006).
has a potentially interesting ruby source under Operated by Rockland Kenya Ltd., it is also Africa’s
development. True North Gems, a publicly traded largest mechanized ruby operation, producing most-
Canadian company, began exploring a large area ly cabochon-grade material that is heated to pro-
(823 km2) on the southwest coast in 2004, produc- duce saturated red colors. About 200–500 kg of
ing pink sapphires and rubies, mostly less than 1 ct. mixed-grade material (figure 16) is recovered
True North reported recovering 1,297 kg of near- monthly, with only a small percentage achieving
gem ruby and pink sapphire, and about 65 kg of top-grade cabochon quality (Laurs, 2008). Other
gem-quality material (Weston, 2009). A limited deposits of jewelry-grade ruby have been found in
amount of this material has been set into fine jew- Kenya, notably the Baringo deposit north of
elry (e.g., figure 15). Nairobi, discovered in 2005, and the Simba deposit
The project is currently in a dispute with the found in 2007. Both are promising, with their finest
Inuit people over their ability to prospect in areas qualities of pinkish red rubies exhibiting great trans-
controlled by True North, which the Inuit consider parency. However, investment funding, logistical
their right under Greenlandic mineral law. True problems, and—in the case of Baringo—disputes
North is also prospecting the Beluga sapphire pro- over mine licenses, have limited the output from
ject on Baffin Island (Carpin, 2009; Weston, 2009). both mines to very small quantities (N. Pattni, pers.
comm., 2009).
Kenya. The John Saul mine, located in the Mangare
area not far from the tsavorite deposits, has been Malawi. Corundum was discovered at Chimwad-
Kenya’s most important and productive ruby mine zulu Hill, in southern Malawi, in 1958 (Rutland,
are hosted by marble and generally found in small expected that, once the Afghan government issues
sizes (Gübelin, 1982). The best stones can resemble mining licenses, some 2,000 people will return from
gems from Myanmar, Vietnam, and Sri Lanka refugee camps to work these deposits (Bowersox et
(Hughes, 1997). There are several challenges to min- al., 2009). Afghanistan’s Vardak Province has pro-
ing these deposits, beyond those inherent in this duced a small amount of blue sapphires (Quinn and
war-torn region: tribal rivalries, rugged terrain, and Laurs, 2004).
an almost nonexistent infrastructure (Snee, 2006). The first rubies from the Himalayan Mountains
Bringing steady supplies to market under such con- were discovered in east-central Nepal in the 1980s.
ditions is daunting at best.
In Pakistan, rubies have been mined from mar- Figure 19. The Winza deposit in Tanzania has
bles on Nangimali Mountain (see Kashmir section attracted the attention of serious connoisseurs
above) and from a few deposits in the Hunza Valley because of the superb rubies it can produce. This
near Ahmadabad (e.g., Laurs, 2007). Production 14.97 ct gem is courtesy of Mona Lee Nesseth
from the Hunza Valley has remained small through- Custom and Estate Jewels and a private collector,
out its history, though reserves appear large; invest- Laguna Beach, California. Photo by R. Weldon.
ment in heavy machinery and infrastructure is
needed to develop these hard-rock deposits
(“Pakistan’s gemstones. . . ,” 2005). Small deposits
of rubies and predominantly purple sapphires have
been found in the Basha Valley (northern Pakistan;
Laurs, 2007) and Batakundi (North West Frontier
Province; Quinn and Laurs, 2004).
In neighboring Afghanistan, marble-hosted
rubies and sapphires occur mainly at Jegdalek, some
60 km southeast of Kabul. According to a 2009 sta-
tus report on the Afghan gem industry (Bowersox et
al., 2009), a government-imposed moratorium on
gem mining has resulted in scant production in
recent years. Flooding at Jegdalek has also halted
activity at some of the sites. Nevertheless, some
two dozen mines are on the verge of becoming oper-
ational in Afghanistan’s Jegdalek region today. It is
ABOUT THE AUTHORS California); Eric Braunwart (Colombia Gem House, Vancouver,
Mr. Shor (russell.shor@gia.edu) is senior industry analyst, and Washington); Evan Caplan (Omi Gems, Los Angeles); William
Mr. Weldon is a gemologist and manager of photography Larson (Palagems.com, Fallbrook, California); Jean Claude
and visual communications, at GIA in Carlsbad, California. Michelou (International Colored Gemstone Association, New
York); Nitin Pattni (Corby Ltd., Nairobi, Kenya); Al Gilbertson,
ACKNOWLEDGMENTS Cathy Jonathan, Dr. James E. Shigley, and Caroline Nelms of
The authors are grateful to the following individuals for information GIA Carlsbad; Robert Kane (Fine Gems International, Helena,
and assistance: Edward Boehm (Joeb Enterprises, Chattanooga, Mont.); Randy Sadler (JTV.com, Knoxville, Tennessee); Andrew
Tennessee); François Curiel (Christie’s Europe, Geneva); Tom Lee Smith (True North Gems, Vancouver, BC, Canada); and
Cushman, Richfield Investor Services, Antananarivo, Ploypalin Wacharaphatanasakul and Thawatchai
Madagascar; Roland Schluessel (Pillar and Stone, Tiburon, Wacharaphatanasakul (Prime Cut Gems, Chanthaburi, Thailand).
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