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  UN's bid to track a gem's country of origin get backing of major industry body


April 14, 2013


A United Nations initiative to create a mechanism that certifies and tracks colored gemstones from their countries of origin has been joined by the colored gemstone sector's leading global body, International Colored Gemstone Association (ICA).

The project, which was initiated by the United Nations Interregional Crime and Justice Research Institute (UNICRI), plans to develop a certificate of origin system for colored gemstones and a corresponding tracking system. In so doing, it hopes to improve of environmental, social and governance performance along the chain of distribution.

The prospective system seems to be loosely based on the Kimberley Process Certification Scheme, which was introduced in the diamond industry in 2003, and subsequently led to a dramatic fall in the number of conflict diamonds entering the pipeline.

"The colored gemstone industry could be positively aided by more virtuous governance practices of the stakeholders in tackling different threats and abuses," stated the UN agency. "These range from security issues to illicit trafficking, fraud, theft, money laundering, critical environment and ecosystem impacts, unsafe and unacceptable working conditions."

The initiative was presented in a meeting on April 9 and 10 at the UNICRI headquarter in Turin, Italy, where selected stakeholders, including ICA, were invited for initial consultations. The participants included representatives of governments of Brazil, Colombia, Kenya, Mozambique, Sri Lanka and Tanzania as well as from the luxury jewelry brands and gemological laboratory sector.

The meeting was highlighted by presentation of case studies by Brazil and South Africa on issues related to the colored gemstones and precious metals supply chain from mine to export and beyond.

"In the present context, tracking gemstones from their geographical origin with a realistic approach is an opportunity for the public sector, the gems and jewelry industry and the civil society to address together social, technical and environmental issues as well as illicit and criminal practices threatening our sector," said ICA President Wilson Yuen, addressing the meeting. "This will undoubtedly enhance the transparency of the distribution chain and benefit all the stakeholders from mine to market and build up consumer confidence."

Jonathan Lucas, the director of UNICRI, said that the ultimate aim of the project is, through the cooperation of governments and the private sector, to create a mechanism that will promote ethical measures, transparency and sustainable development in the colored gemstone sector and the gems and jewelry industry.

It will not be a simple process. About 80 percent of the gemstones entering the colored gemstone trade, which currently is estimated to be worth US$ 10-12 billion per year, comes from small scale informal mining. In contrast, in excess of 90 percent of production is produced by major, corporate owned and run mining companies.

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