The Emerald Business In South America

Here is an interesting overview on the state of emerald mines and the new business model for the industry.

Andrew Lucas (GIA), Eric Welch (GIA), Jean Claude Michelou (ICA, Colombia), Marcelo Ribeiro (Belmont LTDA, Brazil), Luiz Martins (Stone World, Brazil), Pedro Padua (GIA) and Sergio Martins (Stone World, Brazil) writes:

South America is considered by many in the gemstone industry to be the most important continent for emerald production. Colombia is the number one exporter of emeralds to the United States, and Brazil is also a highly important commercial source of emeralds. This information was obtained during two trips to the mining areas organized by the International Colored Gemstone Association and subsequent correspondence with ICA members.

The techniques used to explore and develop new mines, such as the Piteiras mine in Minas Gerais, Brazil, are typically more common for diamond mines than for colored stone mines. Emerald cutter and wholesaler Stone World of Sao Paulo, Brazil, formed a joint venture with Seahawk Minerals to vertically integrate the operation from mine to cutter to wholesale office. The Belmont mine, also in Minas Gerais, began in a more traditional process for colored stone mines. Emeralds were found on this property, which still operates as a cattle ranch. The Belmont mine began as a highly successful open pit operation, which continues today. The most advanced resources in geological modeling and mine planning have led to the opening of an underground mine to complement the open-pit operation. Belmont has an extensive sorting operation for their rough to meet the needs of their customers.

The La Pita area in Colombia has become the major commercial emerald-producing area in the country, with most production coming from the Consorcio mine. A number of other productive underground mines also exist in this area by the Rio Minero, including the La Pita Tunnel, Cunas, El Totumo, and Polveros mines. The Puerto Arturo mine in Muzo is still in production and under control of the Carranza group, which also has a minor partnership in the Consorcio mine and an influential stake in the Cunas mine. Many of the mine stakeholders in Colombia, whether they have interests in the La Pita, Muzo, Coscuez, or Chivor areas, are also involved in cutting and wholesale sales of polished goods.