The colored gemstone industry, while offering beauty and value, faces significant ethical challenges related to its supply chain. This article examines these challenges, focusing on issues of responsible sourcing, labor practices, and traceability, as they pertain to several gemstones including emerald, ruby, sapphire, and tanzanite. The discussion draws upon current initiatives and frameworks aimed at promoting sustainability and ethical conduct within the industry.
Background: Artisanal and Small-Scale Mining
The vast majority of colored gemstone mining occurs within the artisanal and small-scale mining (ASM) sector. Operating in over 80 countries, ASM traditionally involved manual extraction methods, often in areas unsuitable for large-scale operations. The Organisation for Economic Co-operation and Development (OECD) has defined ASM as extraction conducted by individuals or groups using limited mechanization, often where larger operations are impractical or illegal. This sector, while providing livelihoods for many, is inherently linked to a range of risks.
Risks Within the Supply Chain
A comprehensive risk management strategy, known as due diligence, is crucial for navigating the complexities of the colored gemstone supply chain. Key risks identified include child and forced labor, unsafe working conditions, environmental damage, connections to armed conflict and criminal activity, money laundering, and smuggling. These risks are interconnected and require a holistic approach to mitigation.
Child Labor in Gemstone Mining
Child labor remains a significant concern within the ASM sector. The International Labour Organization (ILO) considers the mining industry hazardous for children, even in seemingly less harmful alluvial mining operations. Often, children are involved due to coercion or debt bondage between employers and their families, creating a devastating psychological impact. The ILO’s International Programme on the Elimination of Child Labour (IPEC) has highlighted that informal mining areas are frequently associated with drug abuse, prostitution, and violence. The physical demands of mining also negatively affect children’s well-being.
However, the situation is nuanced. In some communities, such as Kambove in the Democratic Republic of Congo (DRC), children’s participation in mining is driven by economic necessity, with wages contributing to family income or school fees. In these cases, family involvement in mining can be seen as beneficial to the community. Nevertheless, any form of work detrimental to a child’s health, education, or development is considered harmful.
Forced Labor and Specific Gemstone Sources
Forced labor is also a prevalent issue, particularly in the mining and processing of certain gemstones. The U.S. Department of Labor has identified specific materials produced through exploitation, including emeralds from Colombia, jade and rubies from Myanmar (Burma), sapphires from Madagascar, and tanzanite from Tanzania. Multiple gemstones are also sourced from Bangladesh, India, and Zambia under exploitative conditions.
Towards Responsible Sourcing and Traceability
Recognizing these challenges, various initiatives are underway to promote responsible sourcing and traceability. The Dodd-Frank Act of 2010, aimed at addressing conflict minerals from the DRC region, has spurred the development of tracking and tracing systems. Similar systems are being explored for the colored gemstone sector.
Organizations like the Jeweltree Foundation are pioneering online track-and-trace platforms, working directly with cooperatives and small-scale communities in Brazil, Madagascar, and Tanzania. Jeweltree maintains a database of certified members and approved suppliers, logging each step of the jewelry-making process to ensure ethical and transparent sourcing.
Furthermore, governments and industry groups, including the International Colored Gemstone Association (ICA), have collaborated with the United Nations Interregional Crime and Justice Research Institute (UNICRI) to create a system for tracing and certifying the origin of colored gemstones. This program was under development as of 2016, with further information expected to become available.
Environmental Rehabilitation in Mining
The environmental impact of mining is another critical concern. Recognizing the financial burden of reclamation and rehabilitation, the Asia Foundation’s Frugal Rehabilitation Methodology (FRM) offers a practical approach for ASM communities. FRM focuses on achievable rehabilitation plans, including waste management, toxic waste disposal, and vegetation planting. The Whole Mine Cycle Approach, a component of FRM, encourages small mines to integrate rehabilitation into their standard operations to mitigate environmental damage proactively. Since 2014, 17 projects utilizing FRM have been successfully completed, including one in Mongolia. While initially developed for gold and fluorite mining, FRM can be adapted for colored gemstone sources.
The Role of Consumer Education and Corporate Social Responsibility
Consumer education is vital for driving positive change within the industry. Transparency regarding the supply chain, including mine origins and manufacturing details, builds public confidence and encourages demand for ethically sourced gemstones. Marketing materials can highlight the benefits of responsible sourcing, such as improved living conditions in mining communities. Explaining the added value associated with responsibly mined products, which may carry a 10-15% price premium, is also crucial.
The concept of corporate social responsibility (CSR) is gaining prominence within the gem and jewelry industry. Companies are increasingly recognizing the importance of ethical sourcing and sustainable practices. As Eric Braunwart, president and founder of Columbia Gem House, noted, a new narrative is emerging, one based on responsible sourcing and supporting all stakeholders along the supply chain.
Conclusion
The colored gemstone industry faces complex ethical challenges, particularly concerning labor practices and environmental impact within the artisanal and small-scale mining sector. While significant risks exist, ongoing initiatives focused on due diligence, traceability, environmental rehabilitation, and consumer education offer pathways towards a more responsible and sustainable future. Collaboration between governments, industry organizations, and non-governmental organizations is essential to address these challenges effectively and ensure the long-term viability of the industry.