A bridge between Asia and South East Asia, Myanmar is known for its scenic beauty, ethereal cultures and traditions and most importantly, its precious gemstones. In this article, Priyanka Desai talks to Myanmar gemstones industry bigwigs to give you a lowdown of the vast mining market of Myanmar.

History:
Myanmar has long been known as the best source for lustrous rubies in the world, gemstones whose beauty is rivaled only by the emeralds produced by the mines of Colombia.

During the Bagan (Pagan) Dynasty (1044 to 1287 CE) rubies were worn by Myanmar royalty. Some of the royal rubies were so valuable that a Chinese emperor is said to have offered a city in his own country in exchange for one of the prized gemstones.

Rubies were used in ceremonies and to adorn royal regalia, and the choicest items mined were reserved for the court. Some were sold to India and the Middle East, but many of the finest rubies and other gemstones were dedicated to the Buddhist religion.

Myanmar people follow Theravada Buddhism, which preaches the virtues of humility and living a simple life without ostentation. The gems were therefore not used for personal adornment but were encased in the htarpanar-taik, or relic chambers of pagodas and stupas. The search for these riches was one reason why more than 1000 pagodas were desecrated and destroyed by British troops at the end of the Third Anglo-Burmese War.

Diamonds:
With few naturally occurring deposits in Myanmar, diamonds are not as economically productive as other precious stones such as rubies, jades and sapphires.

While the majority of diamonds in the world come from Africa, Myanmar has only small deposits in Mong Mit Township in Shan State, and Myeik township in Tanintharyi Division.Most diamonds in the Myanmar market come from Thailand, India, Hong Kong and Belgium.

A diamond dealer on Shwebontha Street in downtown Yangon said that gem traders come to Myanmar from India to sell diamonds, then they buy rubies, sapphires and jade to take back With them.

Myanmar diamonds are roughly classified into two types: white (or colourless) and yellowish. White diamonds are more expensive than yellow ones. Flaws on the surface of either type will reduce their value.

Precious stones the world over are measured using a unit called a 'carat', but diamonds in Myanmar are measured by dealers with a local unit called a 'rati'. One carat is equal to 1.2 rati.

“The rati, which is only used in Myanmar diamond transactions, is smaller than the internationally recognized carat, so Myanmar diamond dealers suffer losses on the international market,” said Dr Aung Htay, the owner of the Cartia diamond house in downtown Yangon.

Diamond sizes in Myanmar range from .01 to 20 rati, and the stones are graded into classes based on colour, brightness and clarity.One diamond expert in Yangon said that cut, colour and size are matters of personal taste and individual choice. Although one-rati diamonds are the most popular among customers, most people buy according to what they like and how much money they can afford to spend.

“Different people like different sizes and colours. Generally, older women like big and expensive diamonds, whereas young girls like fancy jewellery made of small diamonds. They want up-to-date and strange designs in their bracelets,” said Dr AungHtay.

Dealers recommend that customers get guarantees on any diamonds they buy to ensure their value.

“Buyers have the right to turn around and sell their stones anytime they like, so getting a guarantee is very important,” said Daw Yin Yin Mya.

According to gem shop owners, the diamond market is not very active at the moment. Sales reached their peak in 2002 but have declined since April 2003.

Despite this, diamonds remain a longtime favourite among women, many of whom dream of wearing rings, necklaces, hairpins, earrings and pendants set with the precious stones.

As Daw Yin Yin Mya, the owner of Sein Akariz diamond shop, put it, “Diamonds are the royalty of precious stones. Women who can afford them, wear jewellery decorated with diamonds on grand occasions, such as weddings and other important events. In other words, diamonds represent the standards of their wearers.”

Jade:
Myanmar jade, unrivalled in quality around the world, fills its country with pride.

The English word 'jade' is derived from ijada, Spanish for ‘the stone that cures kidney diseases’. The Chinese word for jade is yu, a general term for any stone that humans utilise for their own purposes.

In Myanmar it is called kyauk sein, which literally means 'green stone'.

Jade is geologically classified into two types: nephrite and jadeite. The latter type is harder, has more lustre and is more valuable. It is found in only five countries -Myanmar, Japan, the U.S., Guatemala and Russia.

However, jadeite from the other countries cannot compare with the unique, tone, texture and translucence of that which comes from upper Myanmar.

Jade has long been used in religious rituals and as a symbol of power and wealth for emperors and dignitaries.However, many people in Asia also believe the stone holds the power to assure good health and good fortune for those who wear it as an amulet.

Despite Myanmar's status as a source of some of the most prized jade in the world, regulations are preventing the country from taking its place in the world market.

“At the moment, we must rely on the Myanmar Gems Emporium and the Gems Trading Centre (GTC) system for selling jade,” said U Nay Win Tun, Chairman, Ruby Dragon Company.

The Myanmar Gems Emporium takes place twice a year, in March and October, and affords merchants the chance to bid on precious gem lots.

The GTC is a year-round gem trading system implemented by the Myanmar Gems Enterprise in 1994.

Moreover, most foreign merchants only buy rough jade lots over fears that the price of rough jade will rise if they buy too many finished products, U Nay Win Tun said.

“At every emporium, about 85 per cent of jade sales consist of rough lots,” said U Nay Win Tun.

He said that the current jade trading system impinges on the country's industrial development and constitutes a sharp contrast to the way business is conducted in China, Hong Kong and Thailand.

“Though we produce exclusive jades, all the finished products are made under the name of other countries or foreign companies. Our jade-cutting technology and designs are also backwards by international standards,” U Nay Win Tun said.

“Only 10 per cent of Myanmar's jade is made into finished products in the country due to the high cost of technicians,” he said.

As a consequence of undeveloped technology and design, local finished products cannot compete with those made in foreign countries, further discouraging the domestic finished products business.

“Sometimes foreign businesses use low-quality rough jade, but they have the technology to polish it to make it look better. So even though our finished products are of better quality, we cannot compete with them,” U Nay Win Tun said.

“We are hoping that trade regulations are liberalised so we can gain knowledge about the international jade market and keep up with design, technological and market demands,” he said.

Such liberalisation will increase the nation's revenue and boost the prestige of Myanmar jade, he added.

Ma Shwe Cynn, the managing director of the Gold Uni Jewellery Company, said that efforts must be made to attract more visitors to Myanmar and promote the local jade market.

“If tourists find that travel in Myanmar is enjoyable and smooth, more visitors will surely come, so we need to make sure that hassle-free hotel accommodations, car rentals and entertainment are widely available,” she said.

Jade is particularly popular among people in Asian countries, such as China, Korea, Vietnam and Japan, she said. “China is becoming our biggest potential customer for jade because its economy is growing,” she added.

“Bangles are the best-selling item because nearly every Chinese woman aged more than 40 years believes that wearing a jade bracelet is good for their health,” said U Nay Win Tun.

Although jade can be found in a variety of colours -including white, yellow, orange, red, brown, purple, black and green - the most valuable type, known as imperial jade, possesses an emerald hue. In Myanmar, it is found only in the Phakant and Tawmaw regions in Kachin State, and Khamti in Sagaing Division.

Rubies:
The vast majority of high-quality rubies on global markets are from Myanmar. Burmese rubies are famous for their dark “pigeon’s blood” colour, which makes them more valuable than rubies from anywhere else. According to industry figures, Myanmar comprises more than 90 percent of the world’s global trade in luxury stone sales by value. Given their deep red colour and their purity, Burmese rubies staggering prices that they are sold for in jewellery auctions.

Mogok, or ‘the valley of rubies’ in northern Myanmar is the heartland of the world’s ruby mining operations.The Mogok Region has been the home of precious stones since the dawn of time, but it wasn't until the British Colonial era that the mining and precious stone trade really took off. British and Indian administrators recognised the potential in the region and set up mining interests.

The colour and quality of gems from Myanmar have made them popular all over the world. However, the beauty of the gems has been tarnished by allegations of human rights abuses and resulting international pressure to regulate Myanmar gem dealings.The U.S. and its allies imposed boycotts and sanctions on Myanmar, which included a ban on the import of Burmese gems. Although most of the economic sanctions were lifted last year, not all have been lifted on gem imports. Furthermore, several European and U.S. jewellery companies, including Bulgari, Cartier, Tiffany & Co. and Leber Jeweler Inc, have voluntarily refused to deal in Burmese gems.

Although China, Thailand, and some other countries that import the gems have not blocked trade with Myanmar, many of the gems they purchase are ultimately targeted for international sales. So that trading conduit also remains vulnerable to the impact of sanctions and boycotts elsewhere.