Edward Johnson: Reforming the Colored Gemstone Industry
Knowing a gemstone’s mine of origin adds value to the gem and helps ensure transparency and sustainability across a supply chain with complex dynamics, as explained by Gemfields’ Corporate Responsibility Director
Stone Origin and Traceability. How important are they today in the decision-making process of brands and end consumers?
Traceability, and in particular knowledge of a gemstone’s mine of origin, has become an increasingly important asset in enhancing the value of a gemstone over the past twenty years. In terms of corporate responsibility, the jewelry industry, which relies on the extractive sector for its supply of precious stones and metals, has been under consumer scrutiny since the early 2000s. The issues surrounding diamond mining in Africa that emerged in the late 1990s changed the way we approach and view the supply chain in high-end jewelry. Since its founding in 2005, Gemfields has been committed to reforming the colored gemstone sector through responsible business practices on a global scale and by introducing a transparent sales model for fully traceable Zambian emeralds and Mozambican rubies.
Is sustainability truly changing the dynamics of the industry, or does it remain a secondary factor compared to color, rarity, and price?
As a concept, sustainability means meeting the needs of the present without compromising the ability of future generations to meet their own needs. Therefore, operating sustainably is not a new idea, as many responsible companies have been doing so for generations. Knowing the mine of origin of a gemstone is an increasingly common request from retailers, and this is adding value to products and companies that can guarantee transparency and traceability. It enables retailers to measure the impact of gemstones and determine where and from whom they should source them.
As a result, we are already seeing that fully traceable gemstones from responsible companies that can demonstrate the positive local impact of their operations are in high demand and are therefore considered more valuable. Historically, gemstones have been valued based on rarity, beauty, and durability. The perceived value of a gemstone has traditionally been determined by the market through factors such as color, clarity, cut, carat weight, treatments, and sometimes gemological opinions regarding origin. Today, understanding supply chains—including the mine of origin—makes it possible to assess the impact on host countries and local communities while reducing risks within supply chains, thereby adding further value.
What initiatives is Gemfields currently undertaking to support the market?
As the world’s leading colored gemstone mining company, Gemfields is proud to have introduced a transparent auction sales system in which all proceeds are repatriated to the host countries. This voluntary practice ensures that royalties, taxes, and dividends (where applicable) are calculated on the actual value achieved at auction, allowing Zambia and Mozambique to fully benefit from the sale of their natural resources.
In 2021, Gemfields introduced a metric called the G-Factor for Natural Resources to demonstrate this commitment. The G-Factor reveals the percentage of natural resource revenues paid to the host government. For the Group’s two principal mining companies—Kagem Mining and Montepuez Ruby Mining—the G-Factor for Natural Resources stands at 20% and 25%, respectively, over the ten-year period from 2015 to 2024.
Gemfields encourages other mining companies to publish their G-Factor data annually in order to strengthen trust. In addition, the company is working to align itself with the Initiative for Responsible Mining Assurance (IRMA) standard, further reinforcing compliance with relevant industry standards, such as ISO certification and full membership in the Voluntary Principles Initiative (VPI).
Although less widely known in the gemstone and jewelry sector than organizations such as the Responsible Jewellery Council (RJC), IRMA is considered the leading standard for mining companies. Montepuez Ruby Mining (MRM), operated by Gemfields, will begin an independent audit in March 2026 to align with the IRMA Standard for Responsible Mining and will become the first colored gemstone mine to undertake this type of verification.
There are three reasons for pursuing this alignment: strengthening the company’s leadership position within the industry; improving operational processes and therefore the management of financial, legal, and reputational risks; and ensuring that Gemfields remains a trusted partner for all stakeholders.
As an industry leader and founding member of the Coloured Gemstone Working Group (CGWG), Gemfields continuously seeks to improve and modernize the colored gemstone supply chain, helping businesses across the sector become more responsible and sustainable.
What are the main challenges today in the evaluation and classification of colored gemstones?
Colored gemstones are often considered difficult to trace due to the fragmented nature of their supply chains. However, they can be fully traceable when major mines are owned and operated by responsible mining companies committed to generating positive impacts at the local level.
Compliance with laws and alignment with international standards, verified through independent audits of mining companies, can help strengthen consumer confidence and demonstrate the positive value that mining activities can bring. This approach reduces environmental and human rights risks within consumer goods supply chains and contributes to building a fairer and more sustainable global economy.
ABOUT
Gemfields is a world-leading colored gemstone mining company specializing in emeralds from Zambia and rubies from Mozambique. The company is committed to operating responsibly, with transparency, legitimacy, and integrity at the core of its business. The Gemfields Group relisted on London’s AIM market in February 2020 and is also listed on the Johannesburg Stock Exchange.
Traceability, and in particular knowledge of a gemstone’s mine of origin, has become an increasingly important asset in enhancing the value of a gemstone over the past twenty years. In terms of corporate responsibility, the jewelry industry, which relies on the extractive sector for its supply of precious stones and metals, has been under consumer scrutiny since the early 2000s. The issues surrounding diamond mining in Africa that emerged in the late 1990s changed the way we approach and view the supply chain in high-end jewelry. Since its founding in 2005, Gemfields has been committed to reforming the colored gemstone sector through responsible business practices on a global scale and by introducing a transparent sales model for fully traceable Zambian emeralds and Mozambican rubies.
Is sustainability truly changing the dynamics of the industry, or does it remain a secondary factor compared to color, rarity, and price?
As a concept, sustainability means meeting the needs of the present without compromising the ability of future generations to meet their own needs. Therefore, operating sustainably is not a new idea, as many responsible companies have been doing so for generations. Knowing the mine of origin of a gemstone is an increasingly common request from retailers, and this is adding value to products and companies that can guarantee transparency and traceability. It enables retailers to measure the impact of gemstones and determine where and from whom they should source them.
As a result, we are already seeing that fully traceable gemstones from responsible companies that can demonstrate the positive local impact of their operations are in high demand and are therefore considered more valuable. Historically, gemstones have been valued based on rarity, beauty, and durability. The perceived value of a gemstone has traditionally been determined by the market through factors such as color, clarity, cut, carat weight, treatments, and sometimes gemological opinions regarding origin. Today, understanding supply chains—including the mine of origin—makes it possible to assess the impact on host countries and local communities while reducing risks within supply chains, thereby adding further value.
What initiatives is Gemfields currently undertaking to support the market?
As the world’s leading colored gemstone mining company, Gemfields is proud to have introduced a transparent auction sales system in which all proceeds are repatriated to the host countries. This voluntary practice ensures that royalties, taxes, and dividends (where applicable) are calculated on the actual value achieved at auction, allowing Zambia and Mozambique to fully benefit from the sale of their natural resources.
In 2021, Gemfields introduced a metric called the G-Factor for Natural Resources to demonstrate this commitment. The G-Factor reveals the percentage of natural resource revenues paid to the host government. For the Group’s two principal mining companies—Kagem Mining and Montepuez Ruby Mining—the G-Factor for Natural Resources stands at 20% and 25%, respectively, over the ten-year period from 2015 to 2024.
Gemfields encourages other mining companies to publish their G-Factor data annually in order to strengthen trust. In addition, the company is working to align itself with the Initiative for Responsible Mining Assurance (IRMA) standard, further reinforcing compliance with relevant industry standards, such as ISO certification and full membership in the Voluntary Principles Initiative (VPI).
Although less widely known in the gemstone and jewelry sector than organizations such as the Responsible Jewellery Council (RJC), IRMA is considered the leading standard for mining companies. Montepuez Ruby Mining (MRM), operated by Gemfields, will begin an independent audit in March 2026 to align with the IRMA Standard for Responsible Mining and will become the first colored gemstone mine to undertake this type of verification.
There are three reasons for pursuing this alignment: strengthening the company’s leadership position within the industry; improving operational processes and therefore the management of financial, legal, and reputational risks; and ensuring that Gemfields remains a trusted partner for all stakeholders.
As an industry leader and founding member of the Coloured Gemstone Working Group (CGWG), Gemfields continuously seeks to improve and modernize the colored gemstone supply chain, helping businesses across the sector become more responsible and sustainable.
What are the main challenges today in the evaluation and classification of colored gemstones?
Colored gemstones are often considered difficult to trace due to the fragmented nature of their supply chains. However, they can be fully traceable when major mines are owned and operated by responsible mining companies committed to generating positive impacts at the local level.
Compliance with laws and alignment with international standards, verified through independent audits of mining companies, can help strengthen consumer confidence and demonstrate the positive value that mining activities can bring. This approach reduces environmental and human rights risks within consumer goods supply chains and contributes to building a fairer and more sustainable global economy.
ABOUT
Gemfields is a world-leading colored gemstone mining company specializing in emeralds from Zambia and rubies from Mozambique. The company is committed to operating responsibly, with transparency, legitimacy, and integrity at the core of its business. The Gemfields Group relisted on London’s AIM market in February 2020 and is also listed on the Johannesburg Stock Exchange.
