Madagascar Lifts Ban on Gem Rough Exportation

A Roskin Gem News Report

 EXCLUSIVE!

Does the Change of Government

and Lifting of the Export Ban

put Madagascar’s Gem Industry

Back on Track?

The Minister of Energy, Jean Rodolphe Ramanantsoa, has announced that gem rough exports will now be allowed; officially, the ban has been lifted.

It was on February 28, 2008 when then President Marc Ravalomanana, the now former president of Madagascar, banned the export of all mineral products. He later amended this ban to only rough gem materials. From July 2008, rough industrial minerals were allowed to be exported, along with cut gemstones.

The Big Lift

But the question remains, can a lifting of the export ban bring back the gem industry in Madagascar? In 2007, over $30 Million in rough was exported. In 2008, less than $300,000 in exports was reported, and none of it as gem rough. Described in weight, tons of gem and near gem materials were exported in 2006 and 2007. But only kilos went out in 2008. [We have been told that by 2009, a system for smuggling was in place, and so some rough gem material was reaching the outside markets.]

According to inside reports, smuggling caused the most reputable gem businesses to go elsewhere. So with few reputable businesses, coupled with the world economic crash and 1½ years loss of local business, Madagascar’s gem business is now in disarray. Hundreds of thousands of people who have depended for some part of their income on the gem mining industry - either as miners, middlemen, or suppliers - have lost their incomes. A lifting of the ban will help, but how quickly is yet to be seen. It may be several years before Madagascar’s gem industry finally gets back to 2007 levels.

A Change of Power

Ravalomanana has been the “former” president since March of this year when, as described in the international press, a coup d’état changed leadership. Ravalomanana has been in exile in South Africa ever since, and Andry Rajoelina, the former Mayor of Antananarivo and a member of the opposition party, is now leading the Haut Autoritie de Transition (HAT).

Negotiations were being conducted in Mozambique, attempting to resolve the issue and perhaps form a power sharing government. According to the latest report by the BBC online, “The leaders at the centre of Madagascar’s political crisis have reached agreement on a power-sharing government.” The report goes on to say that “the accord would see a transitional period of 15 months, during which legislative and presidential elections would be held. Ousted President Marc Ravalomanana said he would return to Madagascar but not personally take part in the process... Mediators hope it will bring an end to the months of crisis which culminated in the opposition leader, Andry Rajoelina, forcing Mr. Ravalomanana to resign as president on 17 March and flee.”

In order for Rajoelina to actually run for the highest office, the constitution must be changed. Currently, only those 40 years and older can become President. Rajoelina just turned 35 years old.

During this transition of power, it was Rajoelina who appointed new ministers, with Mines being temporarily run by the Minister of Energy.

[http://www.cbc.ca/world/story/2009/03/21/madagascar.html]

The Emerald Export

What started this whole mess was the exportation of a large emerald specimen.

Early in 2008, a 580kg Madagascan emerald specimen was placed on display for several months on Reunion Island, a “department” of France, roughly 200km off the coast of Madagascar. Technically, at this point then, it was in France, and legally exported from Madagascar.

The real complications began while on exhibit on Reunion Island. A journalist labeled the specimen as a 580 kg emerald. This was followed by unusually high values circulating in the international media.

President Ravalomanana was apparently angered by the possible loss of a very valuable national treasure.

The large emerald specimen was already scheduled to be flown to China in the hopes of selling the mineral.

Madagascar had tried twice in court on Reunion Island to get the stone declared illegally exported and returned to Madagascar. This effort failed. The stone did get to China where it went on display.

[For a good look at the emerald mineral specimen, log onto

http://www.mindat.org/article.php/357/The+world%27s+largest+Emerald+on+Matrix+specimen]

Madagascar apparently sent a delegation from Interpol, and both Mines and Justice Ministries to try to get China to seize the stone. This effort failed as well.

The affair finally went to court in Madagascar in June of this year where reportedly all parties involved in the export were exonerated. This saga seems to have ended here.

While the latest reports now state that Ravalomanana banned exports of rough gem materials in order to coerce foreign gem buyers to open cutting factories in Madagascar, and saying nothing about the emerald specimen, this never materialized either.