Modern Mining April 2022

GEMSTONES

Fura Gems eyes leading producer status On the back of the coloured gemstone market tracking strong demand with aver age price increases of 15% – 20% year-on-year for rough stones and 25% – 30% year-on-year for polished gemstones, gemstone miner Fura Gems is ramping up production to ensure increased supply of gemstones to a market with an ardent appetite, CEO Dev Shetty tells Modern Mining’s Nelendhre Moodley.

F ura Gems mines emeralds in Colombia, rubies in Mozambique and, more recently, sapphires in Australia, as it looks to become the world’s leading ruby, emeralds and sapphire producer by 2023. While the US$23-billion gemstone industry is dominated by diamonds, accounting for $21-billion and coloured gemstones at just $2-billion, Shetty is optimistic that, given the growing demand for coloured gemstones, as evidenced by steady price increases year-on-year at various auctions, there is potential to triple the size of the current market over the next few years. “There is certainly enormous opportunity to grow the gemstone market – which is predominantly led by emeralds, rubies and sapphires –from $2-billion per annum to as much as $6-billion – $8-billion over the next six years.” Diamonds occupy pole position in the gemstone market with jade, favoured by the Asian market (China, Japan and Korea) placed second, followed by the combined range of coloured gemstones, including the top three sellers – rubies, emeralds and sapphires. According to Shetty, recent gemstone auctions – the Tucson Gem and Mineral Show, held in early February this year and the gemstone auction held in Sharjar in the United Arab Emirates (UAE) in early April – have both pointed to healthy demand for coloured gemstones. At the auction in Sharjah, Fura Gems presented a selection of untreated natural Colombian emeralds of intense colour and flawless clarity as well as two rare emerald roughs weighing an impressive 81,2 carats and 83,8 carats each – all of which fetched better than expected prices. However, says Shetty, the challenge is ensuring a consistent supply of rough stones to the market. “At every gemstone auction the price of rough gemstones keeps increasing; but the test remains in building confidence in the market’s ability to deliver a steady stream of product,” says Shetty. “The auctions held this year have been a good indicator of demand for gemstones and have set

the tone for the year ahead as they signal robust demand for our products.” Growing the coloured gemstone market Despite being adored by queens, royalty and the elite for centuries, as well as the millennials of this generation, the coloured gemstone sector’s growth has remained sluggish, largely due to its unorgan ised nature.

Fura Gems CEO Dev Shetty

Organisation of the coloured gemstone industry began around 2007/2008, when global emerald and ruby supplier Gemfields realised the untapped potential of the market and began growing the sector. Shetty, who at the time headed the operational side of business as Gemfields Chief Operating Officer, was instrumental in driving the growth of the sector by ramping up produc

There is enormous opportunity to grow the gemstone market from $2-billion per annum to as much as $6-billion – $8-billion over the next six years – Shetty.

tion of Gemfields’ emerald and ruby operations. In 2017, he founded Fura Gems and looked to replicate diamond miner De Beers’ diamond market success by consolidating, growing and building con fidence in the gemstone market through a steady supply of gemstones. “De Beers’ intervention during the 1960s and

By the end of 2023 Fura will be the largest supplier of Colombian emeralds.

April 2022  MODERN MINING  33