Fura Gems (‘Fura’), a gemstone mining company with operations in Colombia, Mozambique, and Australia, presents itself as a responsible producer of emeralds, rubies, and sapphires. However, despite its claims of environmental stewardship and advanced technologies, questions remain regarding the real impact of its activities on local ecosystems and communities. While Fura promotes its use of artificial intelligence to optimize mining processes, this focus on efficiency often raises concerns about the depth of its commitment to sustainability.
The company highlights its reclamation efforts, water management, and recycling practices as measures to protect the environment, yet the effectiveness of these initiatives remains unclear. Though Fura emphasizes transparency with its chain of custody tracing, critics suggest that this approach may be more about branding than genuine accountability.
The broader gemstone mining industry, including companies like Fura, often faces scrutiny for potential environmental damage and inadequate protections for workers and local communities. These issues are frequently overlooked or underreported by regulatory bodies and the companies themselves, leaving it to the media to uncover concerns that the industry might prefer to keep out of sight.
Record-Breaking Ruby Discovery or Strategic Showmanship?
In July 2022, Fura Gems announced its discovery of a massive 101-carat ruby, the Estrela de Fura, mined in Mozambique. This high-profile reveal is intended to bolster the company’s reputation as a global gemstone leader. Fura presented the ruby in Dubai, emphasizing the UAE’s role as a gemstone trade hub, and promoting Mozambique as a premium source of rubies to rival Burma’s historic mines. This move supports Fura’s ambition to position rubies alongside diamonds as equally valuable and desirable on the international market.
«Estrela de Fura» Ruby 101 carat
Yet, behind this display of success lie significant issues tied to gemstone mining in Mozambique and the broader African region. It’s estimated that Mozambique supplies around 50-70% of the world’s rubies, but the industry is mired in systemic challenges. Since Montepuez Ruby Mining Limitada acquired the rights to the deposits in 2011, the industry has attracted various influential groups, and with them, significant criminal activity. Local authorities and government bodies, who should be tackling these issues, often appear complicit in the very problems they are supposed to address. Allegations of bribery and exploitation are rampant, with police, customs officials, and other authorities reportedly benefiting from illegal mining and gemstone sales.
Foreign workers frequently operate without proper visas, while local miners are forced into desperate conditions, often needing to pay bribes just to access mining sites. Many are then compelled to sell their finds at below-market prices to traders. Attempts to legitimize the sector, such as the 2016 initiative to register “artisanal” miners, have largely failed; eight years later, the industry remains rife with illegal operations, and the protections for miners and communities appear minimal at best.
Steps forward: Genuine Sustainability or Marketing Strategy?
Fura Gems has announced plans to invest over 200 million USD in Colombia’s Kosuez emerald mine over the next five years, promoting its commitment to “sustainable development” and pursuing certification from the Responsible Jewellery Council (RJC) to align with environmental and social standards. Additionally, the company is collaborating with Switzerland’s Gubelin laboratory to incorporate blockchain technologies aimed at tracing gemstone origins.
However, while Fura portrays these moves as responsible and transparent, it raises questions about the depth and effectiveness of such initiatives in an industry often criticized for its environmental and social impacts. Certification can sometimes be more about optics than genuine accountability, especially when certification standards are inconsistently enforced. Despite the ambitious collaboration on gemstone traceability, blockchain and tracking technologies in this sector remain experimental and face ongoing challenges in ensuring full transparency.
Fura projects its strategy as a key force in boosting the colored stone market, aiming for a 6 billion USD global market within the next decade by scaling up production and increasing demand, particularly in India, one of the world’s largest gemstone markets. Yet, while Fura emphasizes its marketing and planned partnerships with other mining companies to drive growth, questions remain about the company’s ability to close the gap between supply and demand in a way that genuinely respects environmental and ethical concerns. Despite growing consumer demand for ethically sourced gemstones, Fura’s approach leans heavily on scaling operations, which could exacerbate environmental pressures and potentially sidestep meaningful improvements in working conditions and sourcing practices.
«Spoon of tar»
Fura Gems has invested 10 million USD in the Colombian Tunnel to restore gem mining in the region, but the local community is sharply dissatisfied with such changes. People have been searching for stones in tunnels for decades to feed their families. Fura promised to give people an alternative income, while closing the mines. Nevertheless, the company closed 4 of the 49 mines, while not setting a timetable for the closure of the rest, which poses risks to people’s lives. There have already been known cases of violence related to illegal mining and human losses. Moreover, emerald mining workers have been working in unsafe conditions for many years without basic safety equipment. Fura managers claimed to comply with all labor safety rules, but sources who remained incognito said that this was not the case. Workers are still forced to put themselves in danger in the workplace.
Recently, an armed gang seized the emerald mine, taking 50 workers hostage, which is a natural result of the emerald wars. Emeralds smuggled and sold on the black market are financed by many non-State armed groups. Global demand for emeralds is high and “hundreds of millions of dollars” continue to flow into criminal organizations in Colombia. This is a serious problem affecting the security and stability of the region. The emerald industry is still the preserve of the black market of gangsters, prospectors and dealers.
Such stories and problems can certainly cause reputational damage to a company. Despite the industry challenges, Fura Gems recently entered into a partnership with China Stone to deliver top-quality Mozambican rough rubies. As part of the cooperation, Fura Gems will have to provide evidence confirming the extraction of rubies in accordance with ethical standards. This cooperation might help achieve the company’s goals in meeting the demand for the supply of stones mined with ethical standards, which is an important milestone in the implementation of the company’s overall mission and strengthening the industry as a whole.
Fura Gems emphasizes a commitment to employee welfare, reliability, and transparency in an industry plagued by issues like illegal labor, mine closures, and crime—factors that have long contributed to environmental and social risks worldwide. However, these persistent issues, which the mining sector has yet to address at the root, suggest a certain disconnect between the company’s stated values and actual industry practices.
While Fura publicly commits to sustainable mining and promotes its gemstones as high-quality, premium products, the long-standing, unresolved challenges cast doubt on the depth of its commitment. This duality between “words and deeds” raises questions about the company’s potential for truly sustainable development, despite its declared intentions to address industry-wide risks and promote long-term growth.
Special thanks to the team at Assettracing.com for their valuable input in research capacities, advice, and support with resources in preparing these articles.
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