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2005 World Mining Report
By Gordon Austin, Morgan Beard, Mick Elmore, Cara Woudenberg, and Megan Zborowski

Africa | Central & South America | North America | Asia | Australia | Eastern Europe | The Middle East

Colored gemstone mining is a hard thing to pin down. The vast majority of mining is still done by independent, small-scale miners, working in remote locations and selling to buyers who pay cash and may or may not declare their gems on export. For many producing countries, particularly in Africa, the real production from the mines probably outstrips the reported production by a factor of 10 -- or 20, or possibly 100. No one really knows. In compiling this report, we’ve included estimates from both official and unofficial sources, but in some cases there simply isn’t any information available. This report isn’t intended as a comprehensive list of gemstone deposits; it’s a guide to the most active mining areas in the world right now, with the humble acknowledgment that no matter how much we see, there’s always more out there.

Africa

Congo
Ongoing war in the Democratic Republic of Congo (DRC) has made gem production sporadic, and the precise source of the gemstones coming out is difficult to determine.

One source of fine gem tourmaline is the area around Walikale, on the eastern end of the country near the Rwandan border. After DRC troops drove Rwandan troops out of the area during a conflict in 2002, gems began to flow out. Dealers estimate that as of late 2004, approximately 20 to 30 kilograms of fine blue to green tourmaline were coming out of the country, although not necessarily all from the area around Walikale. Most of the material is green, although some is blue-green, yellow-green, or bright pink. The rough will cut into stones of up to three to five carats.

The country is also said to be a source of limited quantities of very fine red andesine, a type of feldspar, but no specifics were available on locality or production.

Ethiopia
Known primarily for its brown opal -- which occurs in nodules, sometimes with play of color -- Ethiopia is now also producing white opal, crystal opal, contra luz opal, and many other variations. Production remains limited.

Kenya
Kenya has long been known as a source of ruby, and a recent find near the town of Baringo in Kenya's Rift Valley has generated some new excitement. The material is properly described as pink corundum, with much of it falling on the "pink sapphire" end of the scale, and some of it rich enough in color to be classified as ruby. A single miner has claimed a significant percentage of the area. The mine officially opened in July and is expected to produce about half a kilogram of corundum per month. The region is also being worked by a variety of independent miners, who are finding ruby sporadically -- up to two kilograms a month.

The John Saul Mine, which produces the bulk of Kenya's annual ruby exports, continues to produce steadily. There are some other major ruby mining operations in the area around Tsavo National Park, although they generally produce cabochon-grade material.

Another exciting find, discovered in late 2004, is a color-change garnet that is said to resemble fine alexandrite, going from blue or green in daylight to pink or red in incandescent light. The deposit is located near Taita Taveta, Coast province. Production is not extensive -- less than a kilogram per month -- but promises to be steady.

Prospects are looking up for a signature Kenyan gemstone, tsavorite garnet. At the biggest single producer, the Scorpion Mine, some new pockets have opened up that are pushing production higher than it has been at any time this decade, approximately three to four kilograms a month of mixed-grade material.

Also from the Taita Taveta area is a steady production of golden tourmaline. The color ranges from the highly sought-after bright yellow to a darker yellow-green or yellow-brown. The region tends to produce large stones, typically in the one to six carat range, and sometimes as large as 10 or 20 carats. Average production ranges from three to six kilograms per month.

Kenya also produces amethyst, iolite, aquamarine, and various species of garnet. At press time, there were rumors of a new find of aquamarine, but nothing had been confirmed.

Madagascar
Madagascar’s gemstone production boomed in the 1990s and has been sustained in the early years of this decade. The vast mining zone centered around the towns of Ilakaka and Sakaraha in the south central part of the country is still producing in quantity, especially pink and blue sapphire. The area is mined by a combination of artisanal miners -- usually under the control of a single broker who finances the mines -- and private investors. In addition to the sapphire, the area produces garnet, alexandrite, aquamarine, morganite, amethyst, and rose quartz.

The ruby deposit at Andilamena, in the northeastern part of the country, yielded a new find in March 2005. The new material is a very rich pink, sometimes edging over the boundary into pink sapphire, and without a lot of inclusions.

Vatomandry, the other major ruby deposit discovered in 2000, is still producing very small rough. Most of this material has a strong purple component that will turn red with heat treatment. The colors from this deposit are gradually improving, but it produces little rough that will cut more than a 1.5-carat stone.

In the north, fancy-color sapphire is still coming out of Diego Suarez. The area is producing more large, blue sapphire in the two- to seven-carat range than before, but tends to have a lot of green.

A pink tourmaline mine just opened near Antsirabe, and while it is not yet producing significant quantities, early reports say the color is deep rubellite pink and the rough will cut clean stones up to three carats.

Another new mine in Vangainrano is producing fine aquamarine and green beryl in sizes from three to 70 carats.

Pezzottaite, a pink beryl that has the distinction of being the newest gemstone to be recognized by the International Mineralogical Association, was discovered near Ambatovita. The initial pocket appears to be mined out, but miners are continuing to work the area and will occasionally find a stone or two.

Malawi
Gemstone mining in Malawi is almost all done on an artisanal basis, used by locals as a way of supplementing their income. One exception to this is the ruby and sapphire mine at Chimwadzulu Hill in the south central part of the country.

Chimwadzulu is the single biggest mine in Malawi and is responsible for the bulk of the country’s gemstone exports. It’s being worked by a private operator, who is currently doing test mapping of the deposit and some mining, amounting to about 4.5 kilograms of facetable material annually. The deposit produces a range of sizes -- generally less than two carats, but larger stones have been found. The color of the corundum goes from a light pink-orange (padparadscha) to pink to deep purple, and can be sold unheated. The material is being marketed in the United States by a single supplier as Nyala ruby.

Another active area is Mzimba, in the northern part of the country near the border with Zambia. Mzimba’s main gemstone is aquamarine, but it also produces other types of beryl, as well as garnet, amethyst, and rose quartz.

Mozambique
Although Mozambique undoubtedly has huge gemstone potential -- it lends its name to the infamous Mozambique Belt that gave rise to the gem mines of Kenya and Tanzania -- exact production figures are hard to come by.

The major gem-producing areas are in Nampula and Zambezia provinces in the north, which produce aquamarine, tourmaline, amethyst, emerald, morganite, and rose quartz. Official figures for gem production are generally less than 15 kilograms per year for gems of all types; unofficial estimates put the amount in the hundreds of kilograms per year, mostly in aquamarine and tourmaline.

Namibia
Compared to its diamond output, Namibia’s colored stone production is relatively small but with some larger mechanized operations. One of the biggest current producers is Erongo, which has a major deposit of demantoid garnet. Mining is active, with limited mechanization, and the deposit produces an estimated two kilograms of gem-quality demantoid garnet per month. The Erongo region is also a source of aquamarine, topaz, and garnet.

Neu Schwaben, in the Karibib area, produced large quantities of high-quality, blue-green tourmaline in the mid-1990s. It is still thought to have vast reserves, but at last report only about 200 local miners were working the deposits, mostly surface alluvial material. Production has been small and sporadic.

Very fine quality orange spessartite garnet has been found in the Hartmann Mountains, near the Kunene River in the north. The mine is still being worked by a single owner, but produces relatively little.

Nigeria
Over the years, Nigeria has intermittently produced some of the world’s most impressive gemstones. In recent years, much of the activity has focused on the southern part of the country, in particular, Oyo state. Oyo was the site of the infamous rubellite tourmaline and spessartite garnet finds of the late 1990s, and the Ofiki and Saki areas are still producing pink tourmaline in a range of colors, including deep pink. A copper-bearing tourmaline that closely resembles the neon blue and green tourmalines from Brazil’s Paraíba state is still being mined in Idikko and Iganna. Olode produces some spessartite garnet, as well as aquamarine, amethyst, and tourmaline in colors ranging from pink to blue and blue-green. Although mining is active, production currently has little impact on the global market.

Also in the south, neighboring Kwara state produces a variety of tourmaline. The shades most often seen on the market are blue and green, although some sites produce yellow-green, pink, and bicolor tourmaline.

In the central part of the country, the Jos Plateau, which covers parts of Plateau, Kaduna, Bauchi, and Nasarawa states, forms a separate geological belt that has been mined for gemstones for many years.

Kaduna and Bauchi states in the north produce blue sapphire in a number of locations, which is usually found in association with zircon. Kaduna also has deposits of aquamarine, morganite, goshenite, and multiple tourmaline mines, mostly producing pink tourmaline. Bauchi, in addition to sapphire, is a significant source of amethyst and white, blue, and yellow topaz.

Nasarawa state produces pink and green tourmaline, aquamarine, emerald, green beryl, and topaz, while Plateau state has aquamarine, almandine and pyrope garnets, and white topaz.

Somaliland
Geological surveys have found that Somaliland is rich in a wide variety of gemstones. The western part of the country has emerald deposits as well as aquamarine. There have also been finds of ruby, sapphire, orange to yellow opal, and many different types of garnet. Mining and exploration are done on a fairly limited basis, and few of the gems mined make a significant impact on the world market.

South Africa
Though one of the world’s best-known sources of diamond, South Africa produces little in the way of colored gemstones. There are known deposits of emerald and amethyst, but the only gemstone material produced in any significant quantity is tiger’s eye quartz, for which South Africa is one of the world’s major suppliers.

Tanzania
Tanzania is one of Africa’s most important sources of colored gemstones, employing well over half a million small-scale miners at deposits that span the length of the country.

The single gem that’s historically gotten the most attention is tanzanite, a blue zoisite whose only known source is the deposit at Merelani, near the city of Arusha in northern Tanzania. The deposit is broken into four blocks, labeled A through D. Block A is mostly inactive. Blocks B and D are mined by small-scale miners, and their output has been gradually declining over the years as the mines get deeper and more difficult to work. Block C is being worked by TanzaniteOne Ltd. (formerly African Gem Resources or AFGEM); the company has set up a mechanized operation that produced nearly 115 kilograms of rough in the first half of 2005.

Also in the northern part of the country, the Manyara area alexandrite and emerald deposits are producing very little at the moment, although there is some active iolite mining nearby. The ruby mines near Longido continue to produce steadily.

The Umba region, which produces ruby, sapphire, rhodolite garnet, and tourmaline, is still being actively mined, but is producing less than it has in the past, in part due to the depth of the mines and miners’ limited equipment.

Tanzania was the first place that tsavorite garnet was discovered, in an area called Lemshuko, south of Arusha. The area has both hard-rock and alluvial deposits of tsavorite that continue to produce high-quality material, and recently investors have begun setting up mechanized mining operations in the area. A few miles south of the tsavorite area there are also active rhodolite garnet mines.

Moving to the east of Lemshuko, the ruby mines at Losongonoi are more active than ever. Foreign and local investors have started doing some large-scale mining there for the first time.

In central Tanzania, Morogoro has produced some very exciting finds within the past couple of years. The ones that have gotten the most buzz are the pink and red spinels that are found near Mahenge. The Morogoro region is also host to a new deposit of moonstone, which has produced several hundred kilograms of rough so far.

In the south, near the border with Mozambique, are two of Tanzania’s biggest gem deposits, Songea and Tunduru. Songea is known primarily for its ruby and sapphire.

Tunduru produces almost everything, including ruby, sapphire, spinel, garnet, alexandrite, and chrysoberyl. These areas are also producing less than before; they are alluvial deposits, and all of the material that can be easily reached has already been recovered.

In the southeastern corner of the country, the tsavorite mines in Mtwara that made a big splash in the market several years back appear to be mined out.

Zambia
Mining is the backbone of Zambia’s economy, accounting for about 80 percent of export earnings, and about a quarter of that is due to gemstone mining. The vast majority of that -- about 80 percent -- is emerald exports. Emerald mining is centered around the Kafubu area in the north, near the border with the Democratic Republic of Congo. While the majority of the miners there are independent, small-scale miners, the bulk of the production is mined by a few large companies with mechanized, open pits. Government estimates put annual production at anywhere from 500 to 1,000 kilograms of emerald per year.

While emerald is the country’s biggest gem export in value terms, amethyst is the biggest export by volume, accounting for an estimated 700 tons of material each year. The bulk of the production is centered in the Mapatizya area near the southern border, which has a single large, mechanized operation and a number of small-scale miners.

The Lundazi area, on the eastern border near Malawi, is best known for its aquamarine. The region is also the source of “canary” tourmaline, a bright yellow tourmaline that has found a huge market in Japan. The region produces several hundred kilograms of aquamarine per year, approximately two kilograms of the canary tourmaline, and some spessartite garnet.

The Mkushi region produces a wide variety of tourmaline, from dark pink rubellite to pink and green bicolored stones to green and dark blue. Local dealers report that new deposits are being discovered constantly.

Zimbabwe
The only major mining operation in Zimbabwe at present is the well-known Sandawana emerald mines in the Zvishavane region of southwestern Zimbabwe. The mine is being worked by a private company, which has set up a mechanized operation there. The deposit is known for producing emerald of excellent color but in very small sizes, generally cutting gems of under 4 mm in diameter. The mine produces roughly 15 to 20 kilograms of rough emerald per month.

Zimbabwe also has deposits of aquamarine, chrysoberyl, alexandrite, tourmaline, and yellow, green, and pink beryl.

Central and South America

Argentina
The Capillitas Mines, located in Catamarca, Argentina, is the only major rhodochrosite deposit that produces banded rhodochrosite, stalactites, and stalagmites, instead of crystals, which are produced at other rhodochrosite mines.

About 9 tons of rhodochrosite is produced each month during the winter season, and 12 tons during each summer month, compared to only 1.5 tons a month prior to the purchase of the mine in 2001. Although material must still be mined mostly by hand because too much blasting can destroy gem materials, the current mine owners have been able to increase manpower, thus boosting production significantly.

Bolivia
Amethyst, citrine, and ametrine are produced at the Anahí Mine, which is located in eastern Bolivia in the province of Santa Cruz. The mine is known for the volume and uniform quality of its gemstones and is the only known deposit of ametrine.

In the year 2005, the mine is expected to produce a total of 11 million cut stones in a variety of grades and sizes. This includes six million carats of amethyst, three million carats of ametrine, and two million carats of citrine. Approximately 60 tons of cabbing rough in mixed colors is also produced annually.

The output at the mine has gone down in the last few years, and dealers are reporting a shortage of better amethyst rough, as well as ametrine. The company that operates the Anahí mine has created policies aimed at increasing profits which limit production in an effort to extend the life of the mine. This includes cutting more material locally and selling better rough material direct to select high-end designers and cutters, thus decreasing the amount of material available to the market.

Brazil
Brazil is one of the most significant gem-producing nations in the world, with numerous varieties of gems mined in almost every state, many in significant quantities. Currently, overall gem production in Brazil is down, due in part to strict environmental protection regulations and a recent, universally applied minimum wage.

One area that has seen development is Brazilian emerald, especially in Minas Gerais. All existing emerald mines continue to produce material, and new deposits are slowly being discovered and developed. The quality of Brazilian emeralds also continues to improve with the depths of the mines, with more and more dealers comparing the best material to that of Colombia.

Emerald is mined somewhat steadily in the states of Tocantins and Goias, but Itabira and neighboring Nova Era in the state of Minas Gerais are the richest emerald-producing areas in Brazil. Itabira's two main emerald mines, Piteiras and Belmont, use advanced mining technology to produce a steady supply of emerald. Belmont reportedly produces about 60 to 80 kilograms of rough per month, with Piteiras at about 12 kilograms per month. Unlike Belmont and Piteiras, the mines at Nova Era are operated by a large number of independent miners with little in the way of technology. Emerald strikes are hit or miss, but reports indicate that Nova Era is producing some very fine emerald rough lately.

Other emerald mines between the cities of Itabira and Nova Era have had successful test production. One such mine is Rocha, a large deposit near the Belmont and Piteiras mines. Production for the coming year is expected to be 70 to 80 kilograms per month, with quality ranging from low to exceptional, priced up to $1,000 or more per gram. Mine owners expect the deposit to continue to produce for some time.

Tourmaline is mined in several areas throughout Minas Gerais, but current production is down, especially in higher qualities. There haven’t been any major new finds in years, and most of the producing sites are either trickling production or closed altogether. Reports have also indicated that some tourmaline being sold in Brazil is actually African material.

Imperial topaz rough from the Ouro Preto area has been scarce; the largest imperial topaz mine in the region, the Capão Mine, produces somewhat steadily, but better quality material is being cut locally or sold directly from the mine to overseas buyers.

One bright spot in Minas Gerais is aquamarine. New finds of large, fine aquamarine crystals continue to develop, while sites around Minas Gerais, as well as the states of Bahia and Espirito Santo, continue to produce aquamarine on a regular basis.

Minas Gerais has been a known source for alexandrite, particularly in the Nova Era region, but production has been limited in recent months. Many varieties of quartz are also abundant in Minas Gerais, including amethyst, citrine, rose quartz, Lemurian quartz, Diamontina lasers, and green-gold quartz.

North of Minas Gerais, the state of Bahia is a major producer of good quality amethyst and citrine. Although Bahia is a significant source for emerald, production is currently low and mostly low grade.

Opal production in the state of Piaui is slowly recovering after interference from the Brazilian environmental protection agency, but most of the opal is exported to Australia direct from the mines and little is seen on the Brazilian market.

The famous Paraíba tourmaline mines -- located in Parelhas in the state of Rio Grande do Norte and in São José da Batalha in the state of Paraíba -- are known for producing the finest examples of tourmaline, including the electric blue colors unique to this deposit. Production of Paraíba tourmaline has remained extremely slow over the past few years, and the mines continue to produce very little -- if any -- new material.

Also located just outside of Parelhas, the Santa Barbara iolite deposit is currently producing about 50 kilograms of iolite rough per month in very good quality, including some cat's-eyes and stars. The clean material varies in size from approximately one gram to as large as 50 grams, but the bulk of the rough is in the small and medium sizes.

Aquamarine is also mined in this area -- in Paraíba and Rio Grande do Norte -- where current production includes nice, clean faceting rough, although it is dark and sizes are small.

The state of Pará is known for its amethyst, particularly the Maraba deposit. Some fairly new sources of topaz are also coming out of the area, in the Amazon basin, in a limited but ongoing supply. One dealer predicts, however, that this area may run into problems with the Brazilian environmental agency in the future.

Topaz is mined in the state of Rondonia, but supply has dwindled in recent months, especially stones in larger sizes. Low production is attributed to lack of equipment at the mines, which have gotten deeper after decades of surface mining. Rondonia also produces limited amounts of fire opal and amber.

Rio Grande do Sul -- the southernmost state of Brazil -- is a primary source of agate; the material is some of the finest quality in the world and is available in large quantities. The state is also a major source for amethyst; it is known to produce fire opal in varying shades from yellow to red, often in large sizes, but there is no information about current production.

Chile
Lapis lazuli is produced in the Andes Mountains in the Ovalle area of Chile, at an altitude of 12,000 feet. Lapis mined from Chile generally has a strong whitish or gray color, thus diminishing its value. Production appears to be steady, although due to its quality, the material doesn’t impact the market for high quality gemstones.

Colombia
Colombia has historically been the world’s most important source for gem-quality emeralds. Its legendary emerald mines -- Muzo, Coscuez, and Chivor -- have been known to produce emerald off and on since the 1500s. Supply has been gradually decreasing in quantity and quality due to the depth of the mines and Colombia’s unstable political and social conditions.

Colombian emerald production has changed slightly in the last few years, as investors and miners have moved to the newer mines of the La Pita deposit. Emerald production is growing compared to five years ago, but it is still far from the production of the 1990s, when 5 to 6 million carats were extracted each year.

The Muzo, Coscuez, and Chivor mines are still active, but the investment and mining operations there have been reduced over the years. It is estimated that 60 percent of the current production is from La Pita, 20 percent from Coscuez, 10 percent from Muzo, and another 10 percent from Chivor. Coscuez produces mostly commercial material, as does La Pita, although there is a little bit of fine, clean production there. Muzo is still producing some top quality stones, and Chivor emerald is a mix of fine and commercial.

Dominican Republic
In the Dominican Republic, amber is mined north of the city of Santiago and in an area northeast of Santo Domingo. Several active, above-ground mines in the mountains near Santiago currently produce highly sought-after material, although they are producing less and less material each year. Current estimated production is about 50 to 100 kilograms per week, which includes the “marifinga” (small, barren amber pieces). This is a decline of at least 70 percent over the past 25 years.

About five kilograms of blue amber is being produced in the Santiago area each month, but only about a half kilogram is high-quality material. Red, yellow, and darker-colored amber is also found at the mines near Santiago, as well as nice insect-included material and good fossil specimens. Amber is still produced at the mines near Santo Domingo, but the material is of inferior quality, being softer and more brittle than northern Dominican amber.

Larimar, a rare gemstone unique to the Dominican Republic, is mined in a volcanic mountain range in the southwestern region of the country. Most material is retrieved through open pit mining, although the Dominican government is making efforts to modernize the mining system.

Guatemala
Jadeite is found in the remote Motagua Valley near Antigua, Guatemala. There is no organized mining or quarrying at this site; it is all artisanal mining. The number of people working to bring jadeite out is very small, and so is production. Most of the material being produced is of commercial jewelry quality and is consumed by local factories for use by jewelry artisans in Antigua.

Although production is limited, over the last four to five years, the quality of jadeite sold in the local shops has been significantly upgraded. The best Guatemalan material is not as fine as fine Burmese jadeite, but there are Motagua jadeites that have unique color, the most sought-after being the blue and blue-green.

Honduras
Opal is found in Erandique in the department of Lempira, near the Salvadoran boarder in southwestern Honduras. The area produces rare black seam opal (boulder opal), as well as andesite opal, crystal opal, and nodule opal. Although there is reportedly a significant supply in the mines, very little opal is being mined due to the government of Honduras’ strict regulations regarding the mining and exporting of gemstones. One company currently has a mining concession there; it is working three mines in the Erandique area and plans a large-scale operation in January 2006, which could be the first large, legal mining operation for Honduran opal.

Opal has also been produced at mines near the town of Gracias, about 25 miles north of Erandique, but there is little to no current production.

Peru
Commercial production of blue and green opal is mined near Acari in the province of Arequipa in southern Peru. Pink opal is produced in several mines in the province of Ica, as well as a small amount of blue opal.

Currently, production of blue opal is down and pink is up. An estimated 10 tons of pink opal is produced per year, compared to only 4 tons of blue opal. Only 10 percent or less of this blue opal is suitable for jewelry; the material is known to dry out and lose its clarity. The pink opal in general is of better quality, but is in less demand than the blue.

Peruvian blue opal production has decreased by more than half in the past 10 years due to limitations of the deposit; mining of large quantities is sporadic at best.

Uruguay
Between 20 to 30 mines in Uruguay currently produce agate and/or amethyst. These deposits are located in the department of Artigas, about 375 miles north of Montevideo. A percentage of amethyst from this area is also heated to produce citrine.

Dealers in Uruguayan amethyst say that supply at the mines has held steady over the past few years. Artigas is not a high-producing area compared to other amethyst mines like those in Bolivia and Brazil, but demand is high for Uruguayan amethyst, which is famous internationally for its distinctive deep violet color.

North America

Canada
Canada's primary gem export is nephrite jade, found in the Dease Lake area of northern British Columbia. An estimated 200 tons are exported each year, mostly to Asia.

The country's other major gem exports are ammonite and labradorite, which was originally discovered in the province of Labrador. Canada remains a major source of labradorite, especially in fine qualities, although precise figures aren't available. Ammonite is retrieved from the Milk River in Alberta, and remains relatively rare.

Other gem deposits have been discovered throughout the country. Commercial interests are mining sapphire and iolite in British Columbia, emerald and blue beryl in the Yukon, and sapphire on Baffin Island; currently all are in the exploration stage. Fee-dig operations are mining opal in British Columbia and amethyst in Ontario, and various other sites are open to collectors, but none of them produce gems in commercial quantities.

Mexico
A majority of the world’s fire opal is mined in Mexico, with the most important mines in Queretaro, located about 125 miles northwest of Mexico City. Another important producing area is in Magdalena, Jalisco, about 185 miles to the west of Queretaro. Most of what has been seen on the market in the past few years is small, lower grade material. The open pit mines are reportedly up to 500 meters deep in some areas, and most of the bigger rough was mined long ago near the top.

The Chiapas state of Mexico is known for its amber, most of which comes from an area in the Chiapas highlands near the town of Simojovel. The material is much clearer than that from other deposits, and it is highly prized for its transparency and impressive color, including reds. Production remains limited, however, and is estimated at about 200 kilograms per year.

Production of good-quality amethyst in Guerrero state has drastically dropped since flooding at the mines about five years ago. Veracruz also continues to produce amethyst, but lower demand, the flow of material has slowed. The state also produces demantoid garnet.

United States
Gemstone mines in the United States produce a wide variety of gemstones, reportedly more than 60 different types. Despite that, the United States is not a significant gemstone producer, and the trend is decreasing. The U.S. production of natural gemstones from 2000 to 2004 decreased approximately 25 percent.

Commercial mining of gemstones is almost exclusively conducted by family-operated mines or by small, privately-held companies. Other producers are individual collectors or miners, gem and mineral clubs, fee-for-dig operations, and other part time or semi-professional operations. The majority of the value of U.S. gemstones comes from just seven states: Oregon, Arizona, California, Montana, Nevada, Idaho, and Arkansas, in decreasing order of value produced.

Arizona
Arizona’s gemstone production -- including much of the azurite, malachite, turquoise, chrysocolla, and related gems -- is often the byproduct of large-scale copper mining.

Once the world’s largest producer of peridot, mining in Arizona’s San Carlos Apache reservation has been impacted by material from China. Chinese dealers are selling cut peridot for less than the asking price of Arizona peridot rough, pricing it out of the market.

California
Some of the more famous gemstone-producing mines in California -- like the Stewart Mine and Benitoite Mine -- are being converted to fee-for-dig operations. Other mines, including the Himalaya, Tourmaline King, Tourmaline Queen, Pack Rat, Hercules, Little 3, Beebe Hole, Katerina, Gems of Pala, White Quartz mine, White Queen Mine, and Bar-n-Grill mine, are all closed. Production is nil at the famous Pala Tourmaline district, which is nearly depleted.

Montana
Sapphire is essentially the only gemstone produced in Montana today. At one time there were as many as 14 separate sapphire mining operations in Montana; today there is less than half that number. Future prices for rough and cut sapphire will determine the future of Montana’s sapphire production.

Nevada and Idaho
Most of the gemstone mines in both Nevada and Idaho are small-mine operations on federal lands. Production has been stifled due to a change in the federal mining law requiring small mining operations to post high-cost reclamation bonds. Opal producer Virgin Valley in Nevada has essentially become a fee-for-dig operation and has not had significant commercial production.

Oregon
A major mining company in the Pacific Northwest, with opal, agate, and jasper mines in Washington, Idaho, Oregon, and Nevada, did not operate any of its mines in the summer of 2005 due to cost constraints and has stated there are no plans to reopen.

Oregon sunstone operations appear to still be operating, but production may be affected in the future by the need to meet federal requirements for high-cost reclamation bonds.

Utah
According to the Utah Division of Oil, Gas, and Minerals, thus far in 2005, 31 small mines have been issued cease-and-desist orders because of the lack of reclamation bonds and/or mine permits. A significant number of these mines were producing gemstones, so picasso marble, snowflake obsidian, variscite, mahogany obsidian, Tiffany stone, dinosaur bone, and similar gems may be in short supply.

One of Utah’s most famous gemstone mines, the Red Beryl Mine, reportedly has or is undergoing an ownership change; it is also rumored that the resources in the lower portion of the deposit are nearly exhausted.

Asia

Cambodia
Cambodia has two main stone-producing regions. Pailin province, in the west of the country bordering Thailand’s Chanthaburi province, has seen a steep decline in the production of sapphires, but many of the smaller mines are still producing.

The second mining region is in Ratanakiri province, in the northeast of the country bordering Vietnam. Blue zircon has been coming out of the province for years, and the amount is increasing as the stone’s demand increases. The mines in Ratanakiri also produce small amounts of amethyst, peridot, and black opal.

China
China is a big and geologically diverse country that produces a wealth of minerals, but the nature of operations there makes it difficult to pinpoint where gemstone mining is taking place. Globally, most gem mining is done by small companies or individuals, but in China everything is controlled from the top, so small operators are stifled and there is little exploration.

Yunnan Province bordering Myanmar to the west and Laos to the south produces some emerald, but so far in small amounts and not as good as Colombian material. Emerald also comes from the Taxkorgan deposit in Xinjiang Province in the west of the country.

The Hunan region produces peridot, and peridot is coming out of other parts of China, too, but no one can pinpoint the precise locations. The quality is not that of Myanmar or Pakistan, but the flood of material has dominated the lower end of the peridot market for the past decade, although supply appears to be slowing.

In Shandong, sapphire can be found in large sizes, but most of the material is so dark that it is almost black. Some dark blue sapphire is also coming from Hainan Island in the South China Sea.

Turquoise is produced in Yunxian, Zhushan, and Hubei Provinces.

India
Although India is known mainly as a gem-cutting center, gemstone deposits are located in several states. The government restricts mining, however. In addition, some mines along the coastline collapsed in the tsunami of December 2004, though several have reopened.

The state of Orissa is considered one of the major sources of gemstones in India, producing a variety of gemstones, including ruby, sapphire, aquamarine, heliodor, garnet, cat’s-eye chrysoberyl, topaz, zircon, iolite, and tourmaline. Most of these gemstones range in quality, though the garnet is exceptionally flawless.

Several gemstones are mined in the state of Rajasthan, including amethyst, aquamarine, emerald, feldspar, fluorite, and garnet. Some deposits have produced good-quality stones in the past few years, especially fluorite from the Dungarpur area.

The state of Andhra Pradesh is also becoming well known for its gem deposits. Good-quality stones of alexandrite, garnet, ruby, and tourmaline, for example, have been found here.

Alexandrite has also been found in Araku, Narsipattanm, and Vishakhapatnam, but most of the gemstones lack the dramatic color change of Russian alexandrite.

Laos
There are only two known gem mines in land-locked Laos, and they are adjacent on the same deposit in the west of the country -- Ban Huay Xai, in Bokeo Province, which borders both Thailand and Myanmar. One mine is run by French interests and the other by Australian interests. Government corruption makes working in Laos difficult, however, and the mines are now producing only a small quantity of blue sapphire, mostly commercial quality.

Myanmar
In recent years, it has become even more difficult to get a read on the mine situation in Myanmar (formerly Burma), because the country has become so closed. But dealers in Thailand estimate that as much as 80 percent of the global supply of rubies still comes from the politically isolated country.

There are many individual mines in the sprawling Mogok region, northeast of Mandalay in the central part of Myanmar. The area is most famous for its ruby and produces most of the country’s peridot, but many other stones also come from there, including sapphire, spinel, moonstone, and tourmaline.

Mong Hsu, in the eastern central part of the country, is Myanmar’s second-largest mining area. It produces mostly ruby and sapphire of lesser quality than Mogok’s, although the quantity is far greater.

North of Mogok, in Kachin state, the Namya stone tract continues to produce pink sapphire and red spinel. The quantities are far smaller than those of Mogok, but the quality is said to be exceptional.

Production has fallen as much as 10 percent over the past few years, dealers estimate. Getting exact numbers is difficult because so many of the gems are smuggled.

Myitkyina, the northern region of Myanmar bordering China, remains the only place in the country where jadeite is mined. The area’s supply continues to meet the growing demand for jadeite. Nephrite jade is also mined there in large quantities, but jadeite remains the favored.

Sri Lanka
Although most of the mining areas in Sri Lanka were not directly affected by the tsunami of December 2004, the resulting destruction and death contributed to a rise in the overall costs of labor, energy, and land.

Sri Lanka continues to produce sapphire in a variety of colors, including blue, pink, purple, and yellow, but not in large quantities. Pink sapphire, in particular, is currently in very short supply. Some unusual colors have also come out of the mines, including mauve and fuchsia.

Several relatively new, productive mines are Kantale, Horana, Mihintalaya, Ragala, and Bogawantalawa. The Elahera district continues to be known for sapphire, spinel, zircon, garnet, and iolite.

High-quality material has been difficult to find in the Ratnapura district, where mining has taken place for thousands of years. Production is limited, as many of the mines are becoming depleted. But the district continues to supply the market with a variety of gemstones, such as sapphire, spinel, ruby, hessonite garnet, beryl, alexandrite, and sheelite.

A primary deposit of aquamarine, of large quantity and good color, was recently discovered in the Balangoda region of Ratnapura. Other recent discoveries include topaz in Akurella and quartzite in the Opannayaka region of Ratnapura, but there is no sign yet on whether any of these deposits will impact the market.

Thailand
Thailand has a long history of mining, and it remains a center for cutting and heat treating. But there is little rough currently coming out of Thai soil.

Kanchanaburi Province, bordering Myanmar, continues to produce blue and, to a lesser degree, yellow sapphire. But the stones are getting smaller and harder to find by the year. Where once more than 50 miners worked the area, there were only three in late 2005. The blue sapphire is considered good commercial quality and sometimes slightly better, including some stones of five carats and larger.

Chanthaburi province, bordering Cambodia on Thailand’s eastern border, was once Thailand’s other major gem mining region, but now has only one mine -- Bang Kacha (sometimes spelled Bangkraja). It continues to produce blue, green, yellow, and star sapphire, but the amount that comes out of the province is small, although still more than Kanchanaburi.

Many dealers speculate that big sapphire deposits remain undiscovered in Chanthaburi province, but they are in the military buffer zone along the border with Cambodia. With stability in Cambodia continuing, some of those areas could open for exploration.

Vietnam
Vietnam is producing small amounts in several places, but no areas are producing large quantities of good stones.

The best gemstones are coming from the Luk Yen area in Yen Bai province northwest of Hanoi, along the Red River about halfway to the border with China. The mines there, bunched into one small valley parallel to the Red River, produce pinkish-red ruby of commercial grade and sometimes a little better. Some star ruby is found there, too.

A smaller amount of blue and green sapphire and spinel is also coming from the mines there, as well as aquamarine and topaz.

Mines around Quy Chau northwest of Vinh in Nghe An province are producing ruby, sapphire, aquamarine, and chrysoberyl. But again, the quantities are minimal and not high quality.

In the southern half of the country, in the central highland provinces of Dac Lac and Lam Dong, there are even smaller amounts of yellow and blue (some say it is almost greenish) sapphire. Although the amount of stones is negligible, it has the potential to expand. Lam Dong province also produces topaz crystals, and there are small amounts of amethyst, aquamarine, peridot, and tourmaline.

Jade is found in the northwest of the country in Son La Province. It is used for carvings sold in tourist centers, but is not considered to be gem quality.

Australia

Even as new areas in Australia open up for opal mining -- most is on government-controlled or aboriginal land -- technical difficulties crop up to limit production. In Queensland, for example, where boulder opal is mined over a vast stretch of the Outback from Winton to Cunamulla, fuel costs have made life more difficult for miners, resulting in a slight decrease in production.

In South Australia, where the bulk of the production is in white opal, Lambina's mining population has dropped from approximately 250 to 40 due to the added requirement to pay a reclamation bond. Those who remain, however, report that production is strong. In nearby Mintabie, a community of about 150 miners has seen reduced production due to mechanical problems, although prospecting continues. In Coober Pedy, the added expenses of mining are also taking their toll, particularly fuel costs. However, the area is also producing some very good-quality opal.

In New South Wales, production is estimated to be half of what it was a decade ago. There has not been a major find there since the late 1980s, although the area continues to produce some good material, and recently the government opened up another 620 square miles for prospecting and mining.

The same difficulties -- operating expenses and government regulations -- are affecting Australian sapphire mining. One notable exception is the Gloucester corundum deposit in New South Wales, which is producing large quantities of ruby and fancy-colored sapphire, although most are in sub-carat sizes. Reports indicate that 12.5 kilograms of gem-grade ruby and sapphire were recovered during a two-week period in August.

In central Queensland, new regulations have opened up more area for sapphire mining as well as opal mining; as a result, approximately 500 sapphire miners are working throughout the region. Large-scale mechanized mining has been hampered by a continuing drought, and a decrease in local buyers has made funds hard to come by. The future remains uncertain.

Eastern Europe

Baltic Amber Region
The Plazhova strip mine, located in the Kaliningrad Zone of Russia, produced approximately 70 percent of the global supply of raw amber until the mine flooded in 2001 due to over mining. The mines collapsed, and legal mining has since been restricted in the area. Approximately 90 tons of amber were extracted from the area in 2004, compared to 1,000 tons in 1996, while amber prices have almost doubled each year since the flood.

Ukraine also has amber deposits on the Volyhn-Polesie border; Poland has deposits in the mining areas along the Vistula River delta. Currently, the yearly production for the Baltic states is approximated at: Russia, 140 tons; Ukraine, 40 tons; Poland, 15 tons; Lithuania, 5 tons.

Russia
Russia is the original source for alexandrite, one of the rarest gemstones in the world. The mines, discovered in the Ural Mountains in 1834, produced for only a few decades and have long since closed. There have been unconfirmed reports of new activity in this area, but no significant amount of material has hit the market yet. Russian alexandrite is still considered highly valuable -- it’s known for its remarkable color change -- and will usually fetch premium prices for stones of high quality.

The Ural Mountains have also been a famous source for high-quality demantoid garnet. After more than a century of little or no active mining, new material has been unearthed in recent years, but mining continues to be sporadic. Miners believe that the area still holds high-quality, rich green material, but licensing problems, disputes over mining rights, and a short mining season continue to hamper production.

The material produced at the mines is lighter in color -- closer to a mint shade of green -- than the fine, rich green material Russia is known for. Both the quantity and size of this material is relatively small, with sizes ranging from 2.5 to 4.5 millimeters, but the stones found have been bright and clean.

The Middle East

Afghanistan
Afghanistan's gem mining industry faces numerous challenges, like political turmoil and the remote, mountainous locations of most of its gem deposits.

Gemstone rough found in Afghanistan usually makes its way on the market via Pakistan, but the transportation of the material continues to be difficult since the war. One dealer reports that the Afghan government has attempted to stop all mining throughout the country, which has led to job loss for approximately 4,000 miners. Mining still does occur, and trade has even increased in Kabul in recent years.

Afghanistan is known for its tourmaline, in a variety of colors like blue, blue-green, and pink, as well as kunzite in pink and bluish-green. Both gemstones are readily available and found in Kunar and Lagman, near Kabul.

Emerald is also mined in the Panjsher area, lapis lazuli in the Badakhshan region, and rubies at the Jegdalek mines. Both ruby and emerald mining has improved over the past few years since it is mostly done by the Northern Alliance, the opposition group who, along with U.S.-led coalition troops, defeated the Taliban.

Pakistan
Pakistan has the potential to become a major player in the world of colored gemstones, since much of the country’s mining prospects are still relatively untapped. Pakistani peridot, including material mined in the Suppatt district, still has a strong presence on the market, although the mines are close to depletion. Some feel the peridot found here rivals that of Arizona because much of it is high quality, large, clean, and without olive overtones.

The main emerald deposits are found in Shamozai, Mingora, and Gujjar Killi, located in Swat Valley. Most of the emerald is of good quality; some dealers compare the best stones to the emerald found in Colombia. The emerald deposits have the potential to produce millions of carats, but much of the land is not currently being mined.

Pakistan has a variety of other gemstones such as ruby, tourmaline, topaz, aquamarine, spinel, lapis lazuli, and beryl.

Tajikistan
The gemstone wealth of Tajikistan is relatively untapped, yet it is known to have a significant amount of high-quality ruby and flawless spinel. Many of these gemstones are finding their way to Pakistan and Afghanistan, where they are sold locally; dealers will find that prices are lower in Tajikistan because of a lack of knowledge of the industry.

This report was produced in collaboration with the International Colored Gemstone Association.

The editors would like to thank the following individuals and organizations for their contribution to this article:

Niyi Abe, Fassoca Gems
Asian Institute of Gemological Sciences
Kirk Bond, Jungle-Gems.com
Gary W. Bowersox, Geovision Inc.
Holly Chmil, Amberjewelry.com
Pornchai Chuenchomlada, Pornchai International
John Cleary, Ventana Mining Co.
Terry Coldham, ICA Ambassador to Australia
Tom Cushman, ICA Ambassador to Madagascar
Jim Davis, Leeward Capital Corp.
David Stanley Epstein, Precious Resources
Jim Fiebig, Gem Adventures
Guillermo Galvis, Emeraldelegance.com
The Gem and Jewelry Institute of Thailand
David Glickman, Lambert Holding Co. Ltd.
Antonio Carlos Goncalves, Jr., Rocha Mineração S.A.
Farooq Hashmi, Intimate Gems
Jeff Graham, Gram Faceting
Farooq Hashmi, Intimate Gems
Jewel Quest International
Susie Kennedy, ICA Ambassador to Kenya
William Larson, Pala International
Jose Lopez, Rhodo Co.
Robert Lowe, Lowe & Associates
Keith Luzzi, TerraTreasures.com
Ramiro Rivero M., Minerales y Metales del Oriente SRL
Dick Mandell, Dick Mandell’s Blue Jade
Leslie Faye Marsh, ICA Ambassador to Zimbabwe
Dennis Patrick, Gemco of Honduras
Fazalur Qazi, S & F Gems and Commodities (Pvt.) Ltd.
Auwal Sani, Gems Exports Nigeria Ltd.
Eric Saul, ICA Ambassador to Tanzania
Leslie Schwing, The Amber Lady
Raja Shah, Color First
Arnold J. Silverberg, AJS Gems Ltd.
Sirimitr Mining
Star Shine Limited
Richard Shull, Out of Our Mines
Jim Walker, Tsavorite USA
Piotr Wiszniewski, Amber Planet/Peter’s Amber Shop
Jim Work, Amber & Larimar by Jim Work
Maria Zawadzka, Amber Gems

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