By Cynthia Unninayar

Rio de Janeiro, one of the world’s most beautiful cities, was the venue for the 14th biennial Congress of the International Colored Gemstone Association (ICA), with the global theme of ethical mining and fair trade, held April 30 to May 4, 2011.

The 14th ICA Congress opened under warm sunny skies at the Sofitel Hotel overlooking Rio’s famous Copacabana Beach. Organized in collaboration with the Brazilian Jewellery and Gems Trade Association (IBGM), the event attracted several hundred attendees from the world’s major gem mining, production, and trade centres.

“Brazil has become an important player in the worldwide gem and jewellery industry,” said Wilson Yuen, ICA president. “The continuous proactive international involvement of IBGM with the industry is a major factor in the development and growth of the Brazilian gem sector, as well as its jewellery manufacturing trade throughout the world.”

“As an emerging world leader in the field of ethical mining and fair trade, Brazil has the opportunity to promote a global exchange in search of certification models and parameters that strengthen this action,” explained Hécliton Santini Henriques, IBGM president.

Brazil Is Booming

There have been a lot of changes in Brazil since the ICA held its first Congress in Belo Horizonte in 1997. During the first day of presentations, speakers talked about the nation’s thriving trade from mine to market, which is expected to grow even more over the next two decades.

With a US$2 trillion GDP, Brazil is the eighth largest economy in the world, sixth largest in purchasing power, making it a key player in the global economy. In the gem and jewellery sector, Brazil counts 15,000 companies, of which 12,000 are retailers, 2,150 manufacture fashion and plated jewellery, 900 produce gold and silver pieces, and 450 cut and polish gemstones. Nearly 75 percent of the industry is comprised of small and medium enterprises. Sales for the sector in 2010 totalled US$6.5 billion (including $2.8 billion in retail), with exports of US$2.2 billion, up from US$1.7 billion in 2009. “Brazilian brands are being recognized worldwide for their unique design, sensibility, and charisma,” adds Henriques. He sees Brazilian jewellery positioned in the mid-range, between the very high-end and lower-cost classic jewellery.

As the fifth largest country in size, Brazil is well endowed with natural resources including some 100 different gem types—notably tourmaline, topaz, opal, quartz varieties, and emerald. Brazil exports about 80 percent of what it produces, but its local market for colour continues to grow with its middle class. Nine local productive clusters in seven Brazilian states help formalize small mining coops through programs with SEBRAE (Brazilian Service of Support for Micro and Small Enterprises). According to Adriano Campos, investment promotions for Apex, the country’s trade and promotion agency, “Brazil’s $1.3 trillion economy is bigger than those of India and Russia, and its per-capita income is nearly twice that of China. Economists and social scientists say the boomingtrade-oriented economy and innovative government programs are lifting millions from poverty.”

An example of this can be seen in the efforts of FIRJAN (Federation of Industries of the State of Rio de Janeiro), working to create a positive environment for the industrial sector. FIRJAN also helps in refurbishing lowincome neighbourhoods and increasing police presence to diminish drug trafficking and violent crimes. Part of its efforts are directed at promoting athlete programs for kids, literacy programs, senior activities, health care, etc.

To assist in ongoing efforts, one of ICA’s major Congress sponsors, Hong Kongbased Lorenzo Jewelry presented the agency with a check for $30,000. ICA president Wilson Yuen has pledged to $50,000 over the next ten years, with $5,000 per year to help FIRJAN in its worthy efforts.

Additional presentations highlighted the innovative and distinctive work of jewellery brands such as H.Stern and Antonio Bernardo, which bring to life original jewellery products that celebrate Brazilian gemstones and “Brazilian Style.” On the retail front, Monte Carlo Jóias is a leading jeweller with 30 locations in Brazil, 15 of which opened in the past two years. The retailer is agood example of the rising strength of the local market in a growing nation forecasted to experience tremendous development over the next decade. MCJ is known for its use of Brazilian gems in designs that are both timeless and daring, of exceptional quality, and affordable prices.

Ethics and Events

Second day topics continued the ethics theme with presentations by industry leaders including Dr. Gaetano Cavalieri, president of CIBJO, on the role of associations for poverty reduction and consumer confidence; Michael Rae, CEO of the Responsible Jewellery Council, on the achievements and challenges surrounding fair trade certification in the jewellery industry; and Eli Izhakoff, World Diamond Council CEO and chairman, on the Kimberley Process, who stated, “When consumers buy jewellery, they should know that not only is it an expression of value, beauty, and emotion, but they have contributed to making a better life for people who need it most dearly.”

In addition to a full agenda of presentations, panel discussions, and social/cultural events, more than forty of Brazil’s most significant producers and exporters of coloured gemstones exhibited their products exclusively for Congress delegates at a special gem fair. “The Congress venue offered the ideal setting for the show in a secure, convenient, and friendly environment,” said Clement Sabbagh, ICA director and Congress chairman.

The program also included interactive Business Matching sessions designed to assist Congress participants interested in establishing new business opportunities. “Business took place between delegates, Brazilians and foreigners, members and non-members of ICA,” indicated Oscar Bouza, international division IBGM. “We wanted to maximize our time together and this dynamic marketing tool provided immediate results.”

This year’s ICA Congress featured many firsts for the Association, among them the launch of its first “Colored Gemstone Jewelry Design Award” contest, as well as the continuing International Poster Competition. Also honoured during the Gala dinner were two recipients of the ICA Lifetime Achievement Award: Paolo Valentini, ICA founding member and past president, for his service to the gem trade; and Hécliton Santini Henriques, IBGM president for his work promoting colour. Serena Tanaka was given a special Honorary ICA Lifetime Achievement Award for her remarkable efforts in helping Brazilians entering the Japanese market

Overcoming Challenges

An impressive line-up of speakers shared insights and success stories that highlighted how the coloured stone industry can overcome challenges to fair trade certification and advance ethical concepts for the benefit of the entire supply chain.

The types of challenges faced by the diamond industry are not completely foreign to the coloured stone business. Several years ago, the tanzanite industry faced scrutiny when the Tanzanian gem was accused of being used to finance terrorist groups. In recent years, concerns surround rubies from Burma, embargoed by the United States to create economic pressure on the nation’s military junta. And, allegations of links between drug cartels and the emerald trade have surfaced time and again in Colombia.

But unlike diamonds, stated Jean Claude Michelou, ICA vice president, in the coloured stone industry: there is no centralized marketing and price control; many varieties of gems come from hundreds of countries with myriad cultures and standards; and 80 percent of production is erratic, lacking investment capacity, and performed by artisanal or small-scale miners in third-world countries. Yet, despite these difficulties, many initiatives are making a difference.

One success story in establishing protocols and dealer warrantees was achieved for tanzanite in 2002 by a coalition of industry groups and representatives. In partnership with governments and NGOs, they were able to address the unfounded accusations that the gem was funding terrorist activities. Douglas Hucker, CEO of the American Gem Trade Association, shared the steps undertaken to vindicate the gem, fortify export documentation, and create a set of policies to ensure the legitimacy of the supply chain. He noted that the task was easier, however, than for a gem such as ruby because tanzanite is only found in Tanzania.

Other examples are found in the efforts of Gemfields, a London-based coloured gemstone producer. According to CEO Ian Harebottle, it’s all about being green, socially, environmentally, and transparently—the true beauty of gems lies in the manner in which they’re managed. Referring to its Kagem emerald and Karibam amethyst mines in Zambia, he cited partnerships as critical, noting that 25 percent and 50 percent of the mines, respectively, are owned by the government. The company also focuses on sustainability and social projects such as supporting schools, medical clinics, and local organic farming. It also works to minimize its impact on the natural surroundings by planting trees and filling old mining pits with water and fish.

Marcelo Ribeiro, director of Belmont Group, an emerald mine in Brazil, mused, “In mining, more money can go into the ground than come out of it. So, you should not act as a treasure hunter, but as an investor, managing risks in pursuit of profitability.” He advocates investment in environmental preservation, geological surveys, and mining feasibility, as well as building infrastructure for the mining community and forming coops for smallscale operations.

From a retailer’s perspective, Steve Bennett, president of Color Rocks Limited and GemsTV based in London, believes that the more you tell the more you sell. Stories about mine safety improvements, certification, local community projects, and information on miners resonate with consumers. He buys gems directly from miners whenever possible and is working to create coops to help small to medium mining operations sell their goods via organized auctions to ensure fair prices and better exposure to potential buyers. The venue and theme for the 2013 ICA Congress will be announced in the coming months.

www.gemstone.org

All photos by Paulo Cartolano, unless otherwise specified.