$250m-Trade in Tanzanite Hit By Fakes

The gemstone tanzanite, found only in Tanzania, now faces a new threat to its market only a couple of years after Al Qaeda funds connection in post-Sept 11, a move was successfully countered by the Tanzanian government.

Gemstone stakeholders now say that the emerging synthetic tanzanite business is another, and equally damaging conspiracy, that if not checked now, it will damage the trade in the world famous gemstone.

"Our concern is that the illegal business will not only tarnish the name and image of Tanzania, it will also destabilise the global market for the gemstone," said Sammy Mollel, the chairman of the Tanzania Mineral Dealers Association (Tamida). Mr Mollel in February attended an International Coloured Gemstone Association (ICA) Congress in Bangkok, where concerns about the trade in synthetic gemstones were raised.

Although the acting Commissioner for Minerals Omar Chambo said the Ministry Energy and Mineral was unaware of the problem, the chairman of the recently formed Tanzania Gemstone Board, Rogers Sezinga, said "the practice is not new".

Mr Sezinga said the issue was first raised in 2003 when trade in tanzanite was suspected to have links with terrorism, especially funding Al Qaeda activities. World dealers then met in Arizona and came up with the Tucson Protocal. "Trading in simulated tanzanite is not a crime but the buyer must be informed in advance about the origin of the gem," he said.

The outcry over "fake" tanzanite intensified recently when police in Arusha pounced on several gemstone traders who allegedly sold 47.5 carats of fake tanzanite valued at $10,600 (Tsh10.6 million) to a foreigner. Police say the confiscated tanzanite turned out to be synthetic when analysed at a government laboratory in Dodoma.

TanzaniteOne, a South African company mining tanzanite, has also expressed concern. "Fake gemstones could seriously disturb the booming global market of genuine tanzanite and undermine consumers' confidence in the gemstone," said Ian Harebottle, the company's chief operating officer.

He warned that unless stern measures are taken to stop clandestine network, the industry could lose a big chunk of its $250 million annual sales. It is claimed that synthetic tanzanite is imported into Tanzania from established laboratories in Russia and traded in Arusha and Dar es Salaam by local firms as well as firms owned by Kenyans among other foreigners.

Tamida and the Arusha Regional Mineral Association (Arema) want immediate government intervention. "We want the gemstone that is the pride of Tanzania protected the way it was when tanzanite was being linked to terrorism," says Mr Mollel.

The Tanzania government and jewellery associations, including ICA - represented in Tanzania by Bhadresh Pandit - in 2002 successfully challenged a Wall Street Journal article linking tanzanite to the Al Qaeda terrorist network.

Mr Pandit, the ICA director who participated in the recent Bangkok ICA congress that branded synthetic tanzanite "illegal," said: "Like we did in 2002, we must now work harder to protect the legitimacy of the (tanzanite) supply chain and to maintain confidence in the gemstone vis-a-vis fake gemstone trading."

It is reported that Russian-grown fosterite has been sold as tanzanite and in some cases natural Iolite has been sold as blue tanzanite. This means the illegal trade has gone international.

Mr Mollel says while he is confident the government will crack down on synthetic tanzanite dealers, the business itself must be streamlined, with buyers obliged to buy the gemstone from authorised dealers who have recognised offices or companies.

TanzaniteOne has gone a step farther in combating the synthetic tanzanite business by grading and accurately certifying its gems, after through checks of genuineness"

Potential tanzanite buyers are reminded that the true colour of tanzanite is a deep mixture of periwinkle blue and violet, with a touch of red. The roughs, or uncut stones, are taken from the mines with a brownish reddish colour.

It is only after being heated that the stones exhibit their distinctive blue-violet colour As the quality of the stones drops, the colour tends to get lighter. Fine quality bears deep colour or saturation.

With any tanzanite, one shade of colour always overpowers the rest.

"The government has already announced procedures for foreigners wishing to buy minerals," says Allan Adrian of the Gem and Rock Company Ltd, adding that foreign nationals who are being swindled are in the first instance not supposed to buy the precious stones from hotels but rather from licensed dealers after consulting relevant government authorities and Tamida.

Minerals bought from licensed dealers, he said, were genuine because mineral officers checked them before they were taxed, packaged, sealed and certified ready for export.

 

From: 16.04.2005

Source: http://www.allafrica.com/stories/200503230129.html