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SPRING 2016 16+ Booth A24 Hall Discovery 4U The biggest manmade diamonds Russian in Hong Kong RusGoldArt The True Russian Jewelry Design Rose Quartz ADVERTISEMENT JeweLers are MaDe in a singLe copy — there is onLy one chance to buy this set! Magic of Life JeweLLery coMpany in rostov-on-Don: Magic of Life JeweLLery coMpany in new york: J e w e L e r s ar e t h e r e i s o n Ly o Magic of Life JeweL 234 Tekucheva St, Rostov-on-Don, Russia, 344018, 234 tel.: Tekucheva +7(961) 319-17-47, St, +7(918) Rostov-on-Don, 569-80-24, e-mail: sale@magic-of-life.ru Russia, 344018, te 62 West 47th Street, Ste. 906E, New York, NY, 10036, tel. +1513/259-9343, 62 West e-mail: 47th ibgoitman@gmail.com Street, Ste. 906E, New York, Magic of Life Jew www.fresh925.ru

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JCK LAS VEGAS JUNE 3 - JUNE 6, 2016 MANDALAY BAY RESORT & CASINO LAS VEGAS THE D EST I NAT I O N TO D I S COV E R W HAT’S N EW A ND W HAT’S N EX T I N T H E F I N E J EW E L RY MA RK ET R EG I ST RAT I O N I S O P E N | J CKO N L I N E.C O M/LASV EGAS @ J C K L ASV E G AS ADVERTISEMENT

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Professional quorterly SPRING, 2016 Magazine about Russian and CIS-countries jewellery market Publication of Jewellery Review Media Holding, MOSCOW Dear colleagues! ast year Russian jewelry market was set off by three major factors: increased state control; decline of retail jewelry sales jewelry production drop; devaluation of the national currency, with the result that did not benefit from the import of jewelry and any opportunities for export development. On the other hand, since January 1, 2017 jewelry import duty will be reduced from 20% to 10%, and import duties on colored stones probably will be cancell. (today they are 15% on rubies, sapphires and emeralds and 10% on other stones). Import duties may be cancelled as well for foreign machinery and equipment for. The most important event that we expect this year - are the results of the participation of Russian companies in the leading international fairs. In March, more then 10 were represented in Hong Kong, they will participate in Baselworld, JCK Las Vegas, will arrive to Singapore, London etc. Today, companies such as Rusgoldart, Kabarovski, Magic of Life, Sakha Taas, define the face of successful Russian jewelry. In current situation it makes sense to foreign buyers to pay attention to the products of Russian companies and the possibility of its purchases. Then consider the possibility of increasing precious stones import to Russia, bearing in mind that they are absolutely essential for our domestic production, and to develop the import into Russia silver jewelry. Finally, perhaps, to think about investing into Russia: there are many enterprises with a full cycle of the equipment, technology professionals who need only for working capital. The investor will receive a low-cost and high-quality jewelry that can successfully market both in Russia and abroad, including China. Russia will change, and we believe that the better. Stay with us! Yours sincerely, Alexey Shcherbina, Editor-in-Chief L Editor-in-Chief Dr. Alexey SHCHERBINA alex@j-r.ru Managing Editor Irina SLESAREVA irina@j-r.ru Experts&obcervers Elena Sedova Vladimir Teslenko Design Sergey Khlebnikov 32A, Horoshovskoe highway, Moscow, 123007, Russia Tel.: +7 (499) 701-9914, (499) 709-1330 www.j-r.ru E-mail: red@j-r.ru, reklama@j-r.ru The editorial office is not responsible for the content of advertisements. No part of Russian Diamonds & Jewellery may be reproduced without reference. This issue was authorized for publication on September, 2015 © Yuvelirnoye Obozreniye Registered by the Russian Federation Committee for the Press. Certificate No. 018300

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HEADLINE CONT E NT S World and Russian jewelry market What was the main in 2015 RKET VIEW 4 GEMS & PRECIOUS COVER GEMOLOGY Who caught the Australian opals? 9 Magic of Life Jewellery Company Rostov-on-Don: 234 Tekucheva St, Rostov-on-Don, Russia, 344018, tel.: +7(961) 319-17-47, +7(918) 569-80-24, e-mail: sale@magic-of-life.ru Emerald speak The First International Emerald Symposiym Takes Place in Colombia 10 Available only at the Intergem 14 New York: 62 West 47th Street, Ste. 906E, New York, NY, 10036, tel. +1513/259-9343, e-mail: ibgoitman@gmail.com The biggest man-made diamonds New Diamond Technology 16 2 RUSSIAN DIAMONDS & JEWEL L E R Y SPRING, 2016

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MARKET Company Russian Jewelry market 2015 22 Crisis can not see? Sergei Obabkov, Krasnaya presnya 24 The True Russian Jewelry, RusGoldArt 26 Report Jewelry market in Ukraine: cautious optimism 28 The main gate to Kazakhstan market 30 Top Kang Lapidary & Jewelry Arts 44 Sisom Logistic: it is easy to work with us 46 Imperial Collection 47 CONT E NT S Classic in details. In Geneva, named best watches 50 DESIGN T re n d b ook 56 The main jewelry fairs in 2016 Russia & postSoviet countries 32 Based alloy SILVER 925: addition alloy Silv-VI CUCo 35 Twin Jewellery shows in Hong Kong as a sourse of optimism for the Russian Jewelers 38 ● Rose Quartz ● Sweet peach ● Clear sky ● Iris flowers ● Sea wave ● Red coral ● Cigarette smoke SPRING, 2016 RUSSIAN DIAMONDS & JEWE L L E R Y 3

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M A RK E T V I E W What was the main in 2015 World and Russian jewelry market Top 9 events of 2015 that have become the most significant consequences of the changes and had the greatest impact on the market development and will have far-reaching consequences, or caused an increased interest in its uniqueness January In January, the ALROSA company transfered to the practice of selling rough diamonds to Armenian diamond cutters selectively, in accordance with their requests. According to an intergovernmental agreement, Armenian companies may buy Russian diamonds for cutting without Russian export duty in 6.5%. At the same time re-export of stones, which they consider themselves to be unprofitable, is prohibited. In this regard, they were allowed to report themselves, in which the range needed to upload their production. In 2015, the company began work on agreed range with all long-term partners. As a result, ALROSA‘s diamond sales due to reduction allowed smaller decline in their value compared with De Beers. During the 2015 global diamond prices have fallen by an average of 15%. On December 9, ALROSA‘s management, headed by the President Andrey Zharkov, held a meeting with long- In March, the Russian design has received unprecedented recognition in Hong Kong, became the absolute winner of the most representative and prestigious competition - International Jewellery Design Excellence Award-2015 in which has been viewed 191 pieces from 31 countries. Grand Prix and the title of Champion of Champions received a ring Existence by Almaz-Holding 2 term clients to summarize the preliminary results of 2015 and discuss current diamond market trends. The meeting attendees discussed the practice of supply under longterm contracts. Andrey Zharkov noted that long-term contracts will remain the cornerstone of the Company‘s sales policy. Such a diamond sales system provides the Company and its clients with stable rough diamond supply and protects from market fluctuations, which is particularly topical in a weakening market. Considering the market conditions, throughout the year ALROSA followed a conservative sales policy, having cut down the prices and rough diamond sales volumes. In 2016, ALROSA is planning to increase production to 39 million carats. According to experts, rough diamond demand is showing signs of recovery, and market stabilization can be expected in 2016. 1 March company (the artist Anna Teplinskaya, designer Timothy Teplinsky ). This victory is unprecedented because for the first time in the history of IJDEA the best piece at the same time became the winner in another category - The Aesthetic Impression. The uniqueness of this situation is the fact that for the first time the «Big Eight» includes representatives of one region and one competition*: honorary award «For * Russia was represented by winners of the Russian Line Award, which is held by the Jewellery Review magazine since 2008. It is also international contest: to take part in it are allowed pieces that have become lawreats of different contents during the past two years. The geography of «Russian line» knows no borders: the best jewelery pieces created in Russia, post-Soviet countries, as well as foreign jewelers - immigrants from the former Soviet Union countries, which are raised in the traditions of Russian and Soviet jewelry school, may take part in it. The jury of «Russian Line»: consist of Gediminas Jablonski - artist, critic, curator of the permanent competition AMBERIF Design Awards and exhibitions of the Museum of Modern Art Tate Modern in London (Poland); Reinhold Ludwig - art historian, author of Modern Jewellery Design, RF Circuit Design (Germany); Irina Slesareva - chief editor of «Jewelry Review», art director of the competition (Russia); Cynthia Uninnayyar – art critic, former chief editor of Trends & Colours magazine (USA) and others. 4 RUSSIAN DIAMONDS & JEWEL L E R Y SPRING, 2016

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MAR KE T VIE W Outstanding Design» got the ring-transformer «Russian Seasons» made by designer from Kyiv (Ukraine) Anna Dmitrieva, working for Moscow company «Elton». The victory of the more honorable that International Jewellery Design Excellence Award is a «Competition among Competitions»: it involved the winners of national and regional contests. Hence the title of the Grand Prix - «Champion of Champions». Very competent jury of IJDEA, which included Lawrence Ma, Chairman of HKTDC Hong Kong International Jewellery Show-2015 Fair Organising Committee; Roberto Coin, President and Owner of Roberto Coin S.P.A. from Italy; Carina Lau, International-renowned Award Winning Actress; Benjamin Chau, HKTDC Deputy Executive Director; Sarah Sevier, Head of Buying & Brand Development of Victoria and Albert Museum from the United Kingdom; Juliet WEIR-de La Rochefoucauld F.G.A., Jewellery writer from France; Louisa Lo, Associate Director and Client Advisory of Christie’s China; and Barney Cheng, Couture Designer of Yenrabi LTD. April In April in Panama, officially opened the World Jewelry Center - the first shopping center in Latin America, specializing in diamonds, colored gemstones and jewelry. The opening ceremony was held in the framework of the first phase of WJH with investments of $200 million, which will be the point of access to the region for suppliers and SPRING, 2016 buyers from around the world. World Jewelry Hub, located in the business district of Santa Maria, also serves as the main building of the PDE, the only recognized diamond exchange in Latin America. The Government of Panama awarded WJH status of a free economic zone for trade in precious stones and jewelery. RUSSIAN DIAMONDS & JEWE L L E R Y 3 5

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M A RK E T V I E W May In May, seven largest world diamond-mining companies - ALROSA, De Beers, Rio Tinto, Dominion Diamond Corporation, Lucara Diamond Corporation, Petra Diamonds Ltd and Gem Diamonds Ltd - created Diamond Producers Association to support the development of the diamond sector, including through marketing initiatives. On the East Economic Forum, held in Vladivostok in early September, ALROSA president Andrei Zharkov said that abandoning the generic marketing 15 years ago, the industry is now faced with the first negative signals - the customer will understand the symbolism of a diamond. In October, the Chairman of DPA was elected Jean-Marc Lieberherr, Managing Director of Rio Tinto diamond business, and the managing director of marketing appointed Sally Morrison - CEO of the Forevermark brand, owned by the De Beers Group. Along 5 with personnel issues, DPA during 2015 conducted a market analysis for the adoption of the forthcoming three-year work plan. Planning to launch a global marketing campaign to increase diamond sales, the DPA has agreed with leading advertising agency Mother New York to develop an advertising campaign with an initial investment of $6 mln, directed mainly at Generation of millenials or «young adults» around the world. In March, DPA has announced that Sally Morrison will leave the organization in May “to pursue another professional opportunity”. Michael Pace, who spent 13 years at the World Gold Council and has also held positions with Diageo and Unilever, has been named interim managing director of marketing. According J-M. Lieberherr, «we look forward to sharing with the trade an update on our marketing plans at the upcoming JCK show». 4 July Sergey Obabkov (at the center), General Director of «Krasnaya Presnya» In July, in Privolzhsk city (Ivanovo region) held celebrations devoted to the 75th of jewelry factory «Krasnaya Presnya» who approached its anniversary with the rank of leader of the Russian jewelry market in the total number of silver jewelry. Products from the Privolzhsk always recognizable because they have their own style, dating back to the age-old Russian motives in the picture, the image of a harmonious classical antiquity, luxurious retro. In this artists work in avant-garde style, bold constructivism, skillfully use a variety of plastic and metal facets fancy stones. The staff of the plant includes above 700 professionals. The plant has a reputation as a law-abiding employer that offers its employees a social package. SPRING, 2016 6 RUSSIAN DIAMONDS & JEWEL L E R Y

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MAR KE T VIE W July In July, the experts HRD Antwerp lab found difficult by recognized synthetic diamonds. Typically, synthetic diamonds are identified by the cubic-octahedral form, if they are produced using the HPHT technology, or a layered structure to create a method of chemical vapor deposition (CVD). Now manufacturers have learned to grow synthetic stones are identical in form of natural diamond - for example, octahedral - are more difficult to immediately recognize less experienced traders in diamonds. Stones considered the HRD, is a colourless diamond melee-weight from 0.01 to 0.04 carats, made by a Chinese company Taidiam, producing diamonds by HPHT and CVD technologies. In the Swiss Gemmological Institute SSEF has announced the release for international export of an upgraded version of its Automated Spectral Diamond Inspection (ASDI) device. The system is designed to support the diamond industry against the threat of small synthetic diamonds mixed into parcels of natural colourless melée diamonds. ASDI is able to conclusively identify colourless natural diamonds, by sorting out both HPHT and CVD colourless synthetic diamonds, as well any colourless HPHT-treated diamonds that may be included in a parcel. It is the only automated system that can examine large numbers of stones of colourless melee, as small as 1 millimetre in diameter or 0.4 points in size, at high speed and at low cost. The ASDI device is being marketed and distributed worldwide by SATT Gems SA, which was established in 2014 specifically for that purpose by SSEF, a worldwide authority in gem testing. With a unique capability of being able to sort diamonds by size with high precision, and at the same time authenticate each diamond‘s natural origin, the ASDI has been tested with millions of melée-sized stones, ever since a prototype was first released in 2013. Sorting at an average speed of 4,000 stones per hour, the system is robustly constructed, adapting it perfectly for industrial environments. The new upgraded version has also been provided an automated symmetry and proportion grading function. The turnover of synthetic diamonds in the global jewelry market may be today, according to various estimates, from a few thousand to nearly 3 billion(!) carats. Most synthetics producers demonstrate strict secrecy, among them there are always new players, particularly in Russia and China. Meanwhile, natural diamonds from different fields also have characteristic differences, in connection with which experts raise questions of expansion of their classification. And in July, a unique origin and properties of diamonds were discovered in the lava of the volcano in Kamchatka. The results showed that the formation of the Kamchatka precious minerals seriously differs from the «classic» when diamonds are due pressure earth formations carbon atoms. Unique stones were not formed in the magmatic melt, and in volcanic gases as a result of shock crystallization under the influence of electrical discharges of lightning. Russian explorers believed that the study Tolbachinskyi and other diamonds contributes to the search for previously unknown diamondiferous areas. 6 7 October In October, ALROSA‘s long-term customer became a leading jewelery retailer, Signet Jewelers Limited Sourcing Ltd, which owns the largest network of jewelry stores in the US, UK and Canada: approx. 3.6 thousand jewelry stores operate under the brands Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. Annual sales Signet -. About $ 6 billion SPRING, 2016 on long-term customer accounts for about 70% of the total sales volume of ALROSA. In addition to Signet‘s, became the first customer of ALROSA in the US, the company has 48 long-term customers, including 10 Russian companies, 16 Belgian, 12 Indian, 5 Chinese, 4 Israeli and one Belarusian. ALROSA‘s long-term customers are, in particular, the largest international network of Tiffany jewelry and Chow Tai Fook. RUSSIAN DIAMONDS & JEWE L L E R Y 7

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M A RK E T V I E W In November at Christie‘s auction in Geneva set an absolute record: an unnamed collector from Hong Kong flawless blue diamond weighing 12.03 carats sold for $48,468,158 (approximately $ 4 million per carat). The new owner renamed the diamond in the «Blue Moon of Josephine», the price of which was a record for any diamond and any color or any other precious stones, as well as cost per carat. Record prices of any other gem in the history of the diamond The Graff Pink was previously installed, which was sold at Sotheby‘s Geneva auction five years ago for $46.2 million, a record price per carat since last year belonged to The Zoe Diamond - $3,3 million per carat. The Blue Moon of Josephine was mined at the deposit Cullinan company Petra Diamonds, a faceted company Cora International. In the same month in Tanzania found a unique pink diamond, estimated by experts at $2.3-3 million. A rare diamond weighing 23.16 ct high quality found in the mine 8 November Williamson Petra Diamonds company. Pink diamonds are only a few mines in Africa and Australia, and the pink color which is caused by changes in the molecular structure of the stone as a result of seismic shock at the time of the formation rock. December In December, the only jewelry street in Moscow, Estet Avenue, enriched OUTLET store, where you can find more than 7000 jewelry at attractive prices, which can be explained by the very name of the store. Outlet - is a special form of retail trade in which retailers are selling products (in this case the collection) of past seasons at great discount prices, and most of all - at cost. This proposal is very favorable for the buyer, and in times of crisis outlets are very popular all over the world. In this case we are talking about high-quality products, which may have just been unlucky to meet with his buyer, and time is running out, companies need working capital ... It is important that the new capital point of sale can be purchased at a discount at least 50% of the product not only Jewellery House Estet, but also a number of other well-known Russian producers.  9 8 RUSSIAN DIAMONDS & JEWEL L E R Y SPRING, 2016

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R E PO R T Opal‘s beauty amazes and fascinates lovers of natural gems its exotic and exclusive, nontransferable abundance of colors the entire spectrum of the rainbow. The hot and dry climate of South Australia is not a hindrance for daily descents into the mine for the miners who risk their lives every minute of your favorite exercises. Heavy and hard work is rewarded generously found wealth - precious opals. To date, the largest collection of opals supplies to the European market the company GNK OPALS. Founder and CEO Gennady Karpenko live in Coober Pedy, underground city. He is looking for opals and processes its. Collection GNK OPALS is very large and constantly updated. Rough high quality opals: bluish-green and crystal. Place of mining - Coober Pedy. Who caught the Australian opals? Black opal 62 carats - an amazing, unique beauty. The stone belongs to the category of collectible. Place of mining - Lightning Ridge. The most rare and expensive are black opals ADVERTISEMENT Australia. Теl.: + 61 423 45 8850 Russia. Теl.: + 7 985 367-1343 Ukraina. Теl.: + 38 096 834-0422 + 38 067 403-1483 Email: gnkopals@gmail.com SPRING, 2016 RUSSIAN DIAMONDS & JEWE L L E R Y GNK OPALS 9

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R E P OR T The First International Emerald Symposium Takes Place in Colombia By Cynthia Unninayar EMERALD SPEAK Organized by Fedesmeraldas—the Colombian Emerald Federation—with support from the country‘s emerald-related bodies, including the governmental Ministry of Mines and Energy, the First International Emerald Symposium was held October 13 to 15 in the nation’s capital city of Bogotá. It was the first time that producer countries have come together at a high-level global gathering to discuss issues relating to the emerald business. In attendance were many stakeholders in the international precious gemstone and jewellery industry, as well as governmental and private delegations from Zambia, Brazil and Afghanistan. Representatives of the major international trade organizations, namely ICA, AGTA, CIBJO, and IBGM were also present, as well as several laboratories, including GIA, AIGS, Gubelin, GGTL, NGTC and LFG, among others. Attracting some 200 local attendees and more than 150 international participants, speakers at the conference addressed many issues and concerns 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, risks, security, marketing and branding. After the opening ceremonies, Dr. Maria Isabel Ulloa, Vice Minister of Mines, provided background on the Colombian emerald industry and how it is changing. Her main point dealt with the issue of transparency. “Currently some 63% of mining activity is carried out without meeting legal requirements or paying taxes. We need to formalize the industry,” she said. “The Colombian emerald industry has reached a milestone and must be inclusive and competitive. International players are arriving and raising the bar for Colombia. We support them, and our emerald industry must adapt to rigorous international standards.” Dr. Santiago Ángel, president of ACM (Asociación Colombiana de Minería), declared, “Colombia is open for business.” He reiterated the Vice Minister’s comments that Colombia welcomes and supports big players to the emerald scene such as UKbased Gemfields and Minería Texas Colombia (a division of U.S.-based Muzo Emerald Colombia, formerly known as Muzo International). “They are important to our economy, and bring investment and higher standards to our industry.” “Colombian emeralds are very much a gemstone of the present,” stated Luis Gabriel Angarita, Dr. Maria Isabel Ulloa, Colombia’s Vice Minister of Mines, talked about the Colombian emerald industry and what the government is doing to ensure a good future 10 RUSSIAN DIAMONDS & JEWEL L E R Y SPRING, 2 0 1 6

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R E PO R T president of ACODES, the Colombian Association of Emerald Exporters. “Approximately two million carats, worth US$147 million, were exported last year, mostly to North America. Even 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 around the globe, while Sean Gilbertson, executive director of UK-based Gemfields spoke about emeralds in Zambia, currently the world’s largest emerald producing nation. He also detailed Gemfields’ involvement in modernizing the Kagem emerald mine in Zambia (where one gram of emerald is found for every five million grams of rock removed). Gemologist Warren Boyd, president of R.T. Boyd Ltd, Canada, provided an indepth look at emerald mining in Russia. The world’s largest producer from 1830 to 1917, Russia today produces significant quantities of emeralds only from the Malyshev mine in the Urals. He explained that Russian material is similar to gems from Colombia’s Cosquez mine, i.e. bright and light material. Gary Bowersox, president of USA-based GeoVision, is an expert on Afghan emeralds. While the country continues in geopolitical turmoil, “its emeralds are worldclass and rival those of Colombia and Zambia,” he said. On the other side of the planet, 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, stressed the company’s dedication to social and environmental responsibility. “Standards and Protocols for Emerald Analysis in Gem Testing Laboratories” was the topic of Dr. Thomas Hainschwang’s presentation (GGTL Laboratories, Liechtenstein) as he summed up various identification techniques and types of treatments. Because origin is such an important topic, he also discussed various methods used to determine the factors that point to a particular provenance. Corporate social responsibility (CSR) featured in many of the discussions. Charles Burgess, director of Minería Texas Colombia (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 centered on the arrival of MTC at a time when the Colombian government was ready to modernize 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 reportedly invested more than US$50 million to modernize it with the latest mining extraction methods, technologydriven craftsmanship, transparency, mine-to-market traceability, and a safe and fair employment environment in the Boyaça region. Burgess added that the Muzo Warren Boyd, president of Canada-based R.T. Boyd Ltd, talked about the emeralds that are still mined in Russia. companies provide more than 800 jobs, of which nearly 500 are in the communities surrounding the mine. Jean Claude Michelou, the international coordinator of the symposium and co-chair of the ICA Fair Trade and Ethical Mining Committee, reported on the traceability of coloured gems in general with an update on current initiatives and how the industry is moving forward. He stressed that consumers want to have confidence in their purchases, which is helped by proper identification of gems and their origins, and the knowledge that they are extracted in an environmentally friendly and ethical manner. “The Gary Bowersox, president of U.S.-based GeoVision, offered his insights into the fine emeralds that are produced in Afghanistan SPRING, 2016 RUSSIAN DIAMONDS & JEWE L L E R Y 11

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R E P OR T into Colombia with the purchase of 70% of the Cosquez mine, one of Colombia’s major emerald producing areas, and the acquisition of mining titles covering 20,000 hectares in the general Muzo and Quípama districts. Branding expert, Dave Lightle, principal at USA-based VMA Worldwide, spent several years in Colombia involved in branding efforts of the country itself, where he and his team changed the dialog about the nation in the eyes of the world. He 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 marketing Colombian emeralds, he said 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 contribution of Gemfields and MUZO on branding Colombian emeralds. Discussing the importance of social media in marketing and branding David Lightle, of VMA Worldwide, offered his expertise on global branding and the obstacles faced by the emerald industry global coloured gemstone industry accounts for US$10-12 billion per year, with 80% coming from small-scale informal mining. The supply chain from mine-to-market is extremely fragmented with a high degree of opacity.” Sean Gilbertson, executive director of Gemfields, the 17th largest mining company listed on the London Stock Exchange, discussed the company’s CSR involving responsible mining and transparency initiatives against the backdrop of its policy of acquiring gem production around the world. Specifically, he spoke about Gemfields’ involvement in modernizing the Kagem emerald mine in Zambia (where one gram of emerald is found for every five million grams of rock removed). He also spoke about developing ruby mining in Mozambique and other areas around the world. Gilbertson also discussed the company’s recent move A discussion group that spoke frankly about theft and robberies in the mines, from left to right: Jean Claude Michelou (moderator), Oscar Baquero (Fedesmeraldas), Gerry Manning (AGTA), Sean Gilbertson (Gemfields), and Charles Burgess (MUZO) 12 RUSSIAN DIAMONDS & JEWEL L E R Y SPRING, 2 0 1 6

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R E PO R T Heated discussions on nomenclature relating to emerald treatments and colours involved the panel and many members of the audience. Left to right: 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) 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. The panel discussions drilled down on topics of crucial interest to the emerald community. The topic drawing the most, and sometimes contentious, comments revolved The symposium also gave attendees a chance to network. Here, jewellery designer Erica Courtney looks at samples of emeralds from local emerald dealer, Amparo Valencia around nomenclature that labs use when listing the degree of treatments for inclusions, i.e. “minor,” “moderate,” “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 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 color also incited lively debate, with some proposing descriptions other than or in addition to “vivid green,” “intense green” and others. No consensus was reached on either topic and the dialog will, no doubt, continue for some time. On a different note, after panellists in another group voiced opinions on topics ranging from traceability to taxes and from procedures to principles, a concern was raised 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 organized criminals in largescale 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 SPRING, 2016 military to quell the situation. The latest attack was in May 2015, when anywhere from 1000 to 3000 people, depending on different estimates, stormed the mine, until the police finally gained control. Losses were in the millions, with estimates ranging from US$12 million to US$42 million. As Gemfields’ begins its move into Colombia, Sean Gilbertson stated that they are learning a lot about conditions in the country, which are different from their operations in Zambia. Referring to the Kagem mine, he was very open in declaring that Gemfields loses 15% to 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 real 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.” There was some discussion of holding a second global emerald symposium in two years, but nothing definitive was announced.  RUSSIAN DIAMONDS & JEWE L L E R Y 13

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