JTV is unsure at this time of how long the closure will be in effect or how long it will take to resolve the dispute. To understand the tanzanite market, one must consider both the unique characteristics of tanzanite and its history prior to A combination of four key factors has set the stage for an industry that has experienced, and continues to experience, a great deal of fluctuation.
Tanzanite is a young gemstone in comparison to others in the market. Tanzanite is found and mined in only one location. Tanzanian government mismanaged the mines in early years and stunted growth. Evidence has been uncovered in artifacts and old transcripts such as the Bible. Tanzanite, on the other hand, was only discovered in Comparatively, its existence to man has been a mere blip on the timeline.
In the case of ancient gems, the market has long been established, mines are claimed, popularity already exists, etc. However, the scenario is different for tanzanite, a stone that has seen mainstream awareness for less than 20 years. Geologists say the chemical environment required to form the beautiful blue gem is so unique that chances of finding the same conditions elsewhere are next to impossible.
Therefore, experts estimate the probability of discovering another tanzanite deposit is less than one in a million. Being found in only one place leads to a couple of problems regarding stability. Therefore, the production of sellable rough is not consistent at all depths and no one can predict this variation.
Additionally, a natural resource from a single location cannot last forever. Eventually, if other deposits are not located and that seems most likely, it will dry up.
Tanzania is a third-world country that only gained independence in Since that time, it has experienced a great deal of hardship. In , a young and inexperienced government began to realize the monetary potential of tanzanite, so it took control and nationalized the mines.
However, necessary structure was not in place, and quality of mined material diminished. That same year, the country was attacked by Uganda, which led to a two-year war. Blocks A and C were awarded to large-scale operators, while Blocks B and D were reserved for local independent miners. At that time, some organization entered the industry, and it was able to slowly move back into US markets. Once advanced mining companies began to operate in Blocks A and C, the tanzanite market was forever changed.
Their business skills were something small-scale miners and Maasai simply did not have. A level of sophistication was introduced to the industry. These businesses had the resources and tools to make tanzanite an international success. Once its stones reach the market, TanzaniteOne has no way to differentiate its products from those of the other miners, putting it at a disadvantage in price negotiations. Like diamonds, tanzanite stones are also rated for their clarity, color, carat, and cut.
Unlike diamonds, they can be certified to be conflict-free. In addition, the TanzaniteOne mine adheres strictly to labor laws and uses technology to minimize its environmental impact. Through the Tanzanite Foundation, TanzaniteOne has also been involved in numerous social projects that benefit the surrounding community. Among the most noteworthy, the mine has provided fresh water to the neighboring areas. In addition, it has given financial support to local schools, a medical clinic, and a community center.
Henning describes another project that empowers local Maasai women by helping them make artisanal jewelry that is then sold internationally. As with pricing, it is impossible to tell TanzaniteOne stones apart from those mined by others. TanzaniteOne has attempted to emulate business models developed in the diamond industry by selling its stones through sightholders, the companies authorized as bulk purchasers of rough diamonds.
According to a sales manager for TanzaniteOne, the company — as the largest miner of tanzanite — believed it could shape the market for the stone and influence its market price by partnering closely with a limited number of carefully selected international gemstone wholesalers. Its size notwithstanding, TanzaniteOne lacks the volume to set a price for tanzanite. In fact, the sightholders yield far more power in the relationship, as they can easily obtain stones from the other miners.
The invasions were aggressive and violent, and included the use of firearms and explosive devices. Several employees were injured, and a security guard was maimed. TanzaniteOne received little support from the authorities and found it difficult to enforce its property rights. Without the full backing of the state, any enforcement action had the potential to blow up into a public relations disaster. TanzaniteOne was also aware of the high level of violence a response could trigger and was concerned for the safety of its employees.
It decided to retreat from those mining areas at great financial cost. When its mining license came up for renegotiation in , the company made a bold but costly decision. But it still meant that Richland Resources took a significant write-off to reflect the new arrangement. As a result, trading of its stock was suspended temporarily. On July 18, , the Tanzanian police began an operation to evict the illegal miners from the areas that belonged to TanzaniteOne. By the next day it was able to reclaim an area from which it had previously retreated.
On July 21, however, a TanzaniteOne employee was fatally shot by illegal miners in the presence of the police — an example of how complex and difficult the situation is for the company. TanzaniteOne is, first and foremost, a mine operator. But it has realized that there are far better rewards for those positioned higher up the value chain. Just as it saw an opportunity to move into gem polishing and cutting when the export ban was enacted, it also realized the advantages of becoming a retailer and launched stores under the brand Tanzanite Experience.
You can see and manage your special requests in your account by loggin into your account and clicking on the link Special Requests. Use of our acclaimed Ask a Gemologist feature which affords you access to certified GIA gemologists is free of charge.
However, you agree to the following tenets when you use the Ask a Gemologist feature:. You will be signed up as a member of theraregemstonecompany. Questions addressed to the Gemologist panel must be related to our business. Questions unrelated to gemstones or jewelry on our website will not be answered. Our system has opened them a Member's Account and sent them an introduction email. Gemological Articles. In later years, conflict has developed between the traditional miners and large scale mining firm Tanzanite One.
This article explores the reasons for this. A Brief History of Tanzanite Mining. In , following the demise of socialism in Tanzania, the Tanzanian Government demarcated the mining area; a narrow strip along the Merelani hills, approximately 5 km north of Mererani township, into four Blocks denoted A, B, C and D as shown below.
Africa was at that stage, seeing an influx of South African companies entering local markets as apartheid ended in their own country and they looked further afield for opportunities. The Genesis of Conflict.
From to Tanzanite One group mined Block C constituted as an offshore company registered in Bermuda but listed on the London stock exchange. Most of these were South African citizens, including all top management and even the site manager. This led to conflict between the small scale Tanzanian miners who had traditionally mined the area and the foreign newcomers who they perceived as exploiting their resources and repatriating profits with little direct benefit to the Merelani community.
They ostensibly envisaged using this model to control the supply to market with a view to forcing up prices. Small Scale "Artisanal" Mining. The small-scale mining sector in Mererani is concentrated in Block B and Block. Primary Mining License. The PML license is only available for. Tanzanian nationals. Block B and D are heavy concentrated and the mines are located.
0コメント