Esmeralda English Version ed

INTERVIEW
INTERVIEW
Hong Kong
Photo: Mstyslav Chernov
Taken from wikimedia commons
Thailand is a very important
center, and they are an important
competition for Colombia because
precious stones such as rubies, sapphires,
amethysts, among others,
converge in its market. Since they
have an advanced market that has
been in place for five decades, they
also do cutting and treatment. That
is why we are developing commercial
activities.
ESMERALDA
32
With these conditions, are
there many opportunities
to reach other markets
with Colombian emeralds?
It is not easy. Therefore, when we
talk about new markets, we refer
to countries that are consolidating,
such as Thailand, the Emirates and
Turkey. Some are already consolidated,
such as China, Hong Kong,
Europe and the United States.
Some emerald producing
countries, such as
Brazil and Zambia, are
positioning themselves
on the scene. Is this a
concern for Colombian
producers and exporters?
Under normal sales conditions,
there is no problem with other
producers handling different quality
products. But since it is now difficult
to buy in Colombia, buyers end
up acquiring other emeralds mainly
due to logistics and costs, rather
than quality. This significantly impacts
Colombia’s emerald trade.
Speaking of international
industry fairs, what’s new?
We are working on the fairs in
Hong Kong, and we started working
on those in Thailand and the
Emirates (the latter in December).
300 MINING TITLES
associated with
the extraction of
emeralds currently
exist in Colombia.
Is there government
support for this
commercial strategy?
For 25 years the emerald industry
has had the Parafiscal Fund,
which has covered some of those
promotional activities. In addition,
we have had important support
from the Ministry of Commerce
and Procolombia.
Although we do not receive financial
resources from these entities,
we do receive guidance and
accompaniment. This has allowed
us to create guides that show off
the Colombian emerald, and each
embassy receives that information.
That support is vital.
2023 closed with an
encouraging balance of USD
$180 million. Will foreign
sales of emeralds reach a
similar number this year?
I think in the order of $100
million to $120 million, in the
most positive case.
How much has the
landscape changed with the
arrival of new players in the
local industry?
Over time, mining development
has required greater technical
structuring and engineering, greater
financial capacity and different
business cycles. Sustainable mining
is a challenge.
Any mining development activity
requires between USD $40 and
$60 million. Large companies that
have this capacity are required.
Regarding the technical
terms of the export
process, taxes and
contributions, how are the
taxes that remain to the
country organized?
First, there are the royalties that
go to the Treasury (they are paid at
the mine entrance or are paid by
the exporter at the time of sale).
“We are working on the fairs in Hong Kong and starting
to work on the ones in Thailand and the Emirates.”
Second, there are parafiscal ones
that go to the National Emerald
Fund. These are the two taxes.
Emerald export activity produces
annually about $20 billion
directly in taxes for the country,
not to mention that most
mining contracts include direct
remuneration clauses that are
paid by producers.
What makes Colombian
emeralds superior in quality
to those of other countries?
This has to do with chemical-geological
issues. Colombian
emeralds originated in different
conditions than the rest of the
world. 96% of emeralds were formed
in igneous and metamorphic
shale rock. Such rocks are about
500 million years old or more.
But our emeralds were created in
a different sedimentary rock.
The environment in which sedimentary
rock formed had a lot to
do with seabeds, salts and different
substances that increased the proportion
of vanadium and chromium
in relation to iron. Emeralds are
beryl, there is no doubt, but what
gives them color is the mixture of
chromium, vanadium and iron. Colombian
emeralds have less iron
in relation to vanadium and chromium,
so there is a noticeable chemical
difference.
How is the emerald
industry implementing
sustainable processes?
In terms of sustainability, there
are elements such as working with
clean energy and water management,
since groundwater has a high
mineral content that can be toxic,
so it is processed with special filters.
In addition, the Parafiscal Fund
invests in renewable energies for
schools and nearby enterprises. ◆
ESMERALDA
33