Ten years after a 19.88-carat Kashmir sapphire shattered auction records in Geneva, the possibility of precious gemstones from the conflict-torn region returning to the global market is on the horizon.
The cushion-shaped sapphire, known as the Star of Kashmir, wowed buyers in 2013 with a selling price of approximately $3,483,017 (approximately Rs. 2 billion). Now, authorities claim that more peacock-blue sapphires will be mined in the Padar region, one of the border states’ toughest regions.
(Representative photo)
Kashmir sapphire is revered as the world’s finest.
This resurgence of the Kashmiri economy marks a major shift and appears to have overcome long-standing hurdles related to mining and marketing rights. It became clear that local traders, who had previously resisted outside involvement in the mining and sale of gemstones, were persistently demanding exorbitant prices and impeding progress.
But the landscape is evolving.
The pivotal moment for these sapphires came after Kashmiri traders were advised by the state-run Gems and Jewelery Export Promotion Council (GJEPC) to comply with global trade norms. Essentially, they were advised to auction off jewelry and evaluate offers from buyers, mirroring the international diamond trade. Traders have since accepted this guidance issued by the Ministry of Commerce through the GJEPC.
“Kashmiri sapphires are very unique. Mining and trading of these gemstones needs to be streamlined,” said Sabyasachi Ray, executive director of GJEPC. “We have explained to those involved in sapphire trading the importance of conducting trade systematically in accordance with international norms. Traders should not raise unrealistic demands,” he added. Ta.
Try the jewels of Kashmir
But implementing such measures in Kashmir, India’s most troubled state, which borders Pakistan, poses considerable challenges. The allure of gemstones has historically captivated tribes spread across the vast region between Afghanistan and Kashmir. In the tribal communities of Afghanistan and Pakistan, gemstones have long been understood as transformative assets. GJEPC officials have warned that Kashmiri traders may still resist following international guidelines and revert to old practices.
GJEPC is aware of the sensitive issues surrounding the jewelery trade in Kashmir and is working diligently to address these complex issues while recognizing the vital role played by local traders. The gems of the Himalayan region boast a rich historical lineage stretching from India to Afghanistan.
Consider Afghanistan’s gem-mining heritage, which dates back to the time of Alexander the Great some 2,300 years ago. By the 10th century, gemstone mines in northern and eastern Afghanistan, bordering Tajikistan and Pakistan, were famous for producing rubies, sapphires, tourmalines, lapis lazuli, and topaz. Gem mines in Afghanistan’s northeastern provinces are now a source of income for the Taliban regime. Similarly, gemstone mining and trade remains contentious in neighboring Pakistan, with tensions often arising over the mining of valuable gemstones.
Government determined to advance mining
However, the Indian government is determined to avoid such disputes in Kashmir. The government, especially the Ministry of Commerce, has drawn up a detailed roadmap for sapphire mining in Kashmir. Preliminary exploration of sapphire mines in Padar region has been completed by Geological Survey of India (GSI). Scientific research will be carried out in this area in the future. Extreme geographical conditions and resource scarcity prevent commercial exploitation of this precious stone. The status of the preliminary investigation was discussed by the executives at the board meeting of J&K Minerals Limited here, chaired by Chief Secretary Arun Mehta. A few months ago, some of the sapphires were taken to Jaipur for display at an exhibition, where Kashmiri sapphires attracted a great deal of interest among traders in the desert state.
A senior state official told reporters that Kashmir’s stones are considered unique around the world and even superior to those found in Mogok, Myanmar. “Kashmir’s sapphires are the best in the world and we demand the best price for them. The mining plan is well in place,” Arun Kishore Kotwal, a senior official in the Jammu and Kashmir state mining department, said in a telephone interview. Told.
Kotwal said the Kashmir Blue peacock colored sapphires will be produced in limited quantities and in stages. The total amount of sapphire to be mined will be in the range of Rs 3,000-4,000 crore. “Then we move on to the next step,” Kotwal said.
It is reliably learned that JKML has commissioned the exploration of sapphire mines to Delhi-based company Mineworks. Mineworks he runs the project in collaboration with JKML. However, the move has raised the ire of a section of Kishtwar’s business community who do not like contracts being awarded to “outsiders”.
However, Mineworks is unlikely to be affected. The company, run by the Tongya family, is one of India’s top jewelry companies with locations all over the world. Recently, one of his subsidiaries of the company acquired a very rare and high quality Zambian emerald which was sold for an undisclosed amount at an auction in Lusaka. With its stunning green color and stunning translucency, this gemstone has been named Insof, which means “baby elephant” in Zambia’s local Bemba language.
At 6,100 carats and 1,220 grams, it is one of the largest emeralds ever mined in the world.
The company also specializes in blue sapphires and boasts an attractive collection of blue colored stones. Among them are his two rare, perfect oval sapphires called sunburst sapphires, which weigh 151.15 carats and 127.68 carats.
Not everyone is satisfied
However, not all the people of the state are happy with the state government’s decision to collaborate with the Delhi-based company. The Jammu and Kashmir Ministry of Industries and Commerce believes that JKML could have avoided the joint venture and carried out mining on its own. Other business groups in the state have also expressed dissatisfaction with the deal. Commerce Department officials did not respond to the state agency’s concerns.
The Ministry recognizes the importance and dignity of these gemstones. According to market experts, Asia is home to some of the world’s best gemstones, with Kashmir leading the way for peacock blue sapphires, followed by Myanmar, Sri Lanka, Thailand, Vietnam, Cambodia, Madagascar and Australia. Experts claim that Kashmir sapphires have unique characteristics that make them the most desirable and expensive of all gemstones.
landslide and treasure
The British wanted to seize control of the princely state of Jammu and Kashmir, but their attempts were thwarted by the then Maharaja Ranbir Singh, who remained loyal to the empire but refused prestigious privileges over the territory and people. Interestingly, four years before the Maharaja’s death in 1881, a landslide occurred in the rugged and remote Khar Valley of the Zanskar Mountains. A landslide at 13,000 feet above sea level exposed a 100-foot wide area of pegmatite rock with blue crystals.
Sapphires were first traced in 1881 by local traders living in the Zanskar and Rahul valleys. They traded gemstones for salt. By 1882, parcels of blue gemstones began arriving in Delhi, Punjab, Himachal Pradesh, and all over India. The Maharaja was very concerned about the lost property and immediately ordered an army of soldiers to guard the mine. The British government eventually took control of the mines. As a result, the original old mine, which produced a limited variety of high quality, large Kashmir sapphires, was completely depleted in 1888.
Later, some of the gemstones were traded by syndicates of jewelers at marketing centers in Kullu and Shimla. Eventually, the Geological Survey of India agreed to discover the sapphire in a glacial cirque above Sumujam village on the southwestern slopes of the rugged Zanskar range.
Why Commerce Department intervention is timely
Exploration and security work for the mineral resources and assets will be carried out by Jammu and Kashmir Minerals Limited. JKML’s operations sometimes came under fire from local traders, many of whom even claimed that JKML was conducting mining activities but was not clear about collecting gemstones. According to the regulations, mining operations must be completed from July 1, 2024 to September 18, 2024. The gemstones are then sent for processing into final products.
The Department of Commerce’s intervention is critical and timely as there have been cases of exposed mineral resources being stolen by smugglers. The ministry is now hoping that intervention from the ministry and state governments will stop such smuggling.
Kishtwar SP Sanjay Kumar recently told mediapersons that there were several reports of smuggling but it has now stopped. Several smugglers have also been arrested.
The mine is currently buried under 10 feet of snow. And it has high security. Once this area is open by the end of May, mining will begin. The world’s top class sapphires will now be introduced to the Indian and global markets.
(Shantanu Guha Ray is Central News Agency’s Asia Editor. His book, The Diamond Trial, was published in 2019).
Disclaimer: These are the author’s personal opinions.