【Madagascar; 】Madagascar Sapphires: A Blessing for Swiss Jewellers, but a Curse for Miners

Editor’s Note

This investigation traces the journey of Madagascar’s sapphires from perilous small-scale mines to luxury Swiss brands, revealing the stark disconnect between the gem’s high value and the profound struggles of those who unearth it.

A World Away from Luxury

Madagascar is today the main source of sapphires for Swiss jewellery and watch brands, such as Bucherer, Richemont, and Gübelin. However, the Malagasy state and the tens of thousands of small-scale miners who extract these gems at great personal risk hardly benefit from this precious resource. For several months, freelance journalist Julie Zaugg investigated the journey of Madagascar’s sapphires. Her journey took her to the small-scale mines of Ilakaka, a 4,000 km² area home to one of the world’s largest deposits, discovered in 1998. In a Martian-like landscape, tens of thousands of men dig into the earth daily, hoping to find a gem and escape poverty.

“Children help their parents sort and wash the rubble collected from the mines from the age of five. From the age of 15, they go down into the makeshift tunnels.”

The multitude of testimonies and powerful images tell the story behind this “sapphire rush” in Madagascar, where 70 percent of the population lives on less than USD 2 a day.

The Parallel Export System

According to United Nations statistics, Madagascar officially exported USD 60,179 worth of gems (rubies, emeralds, and sapphires) in 2022. In reality, various estimates suggest the country ships about USD 150 million worth of sapphires annually. This discrepancy is due to a parallel export system used by most foreign buyers. These intermediaries export rough stones to Sri Lanka and Thailand for cutting and resale at a large profit, circumventing official formalities and using bribes. The gems eventually reach luxury giants like the Geneva-based Richemont group (owner of Cartier), Lucerne-based Bucherer (recently acquired by Rolex), Harry Winston (part of the Swatch Group), and Lucerne-based jeweller Gübelin.

Challenges in Traceability and Due Diligence

This research, funded by the Public Eye Investigation Award, highlights significant challenges in traceability. It also points to the inadequacy of voluntary initiatives and measures taken by Swiss jewellery and watch companies to guarantee that gems are mined with respect for human rights and the environment.

“When questioned about it, most brands acknowledge supply-chain issues, while also referring to their internal monitoring procedures.”
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⏰ Published on: January 16, 2024