Commemorating 800 Years of Mogok's Rich History Amidst Troubled Circumstances

Commemorating 800 Years of Mogok's Rich History Amidst Troubled Circumstances

In the heart of Myanmar, the historic gem mining community of Mogok, known as the "Valley of Rubies," has been grappling with a series of challenges that threaten its future growth and stability. The industry, once a significant contributor to the country's economy, has been impacted by a complex web of factors, including human rights abuses, political instability, and disrupted supply chains.

Allegations of human rights abuses have surfaced in Mozambique's official ruby mining operation, co-owned by Gemfields. Meanwhile, Tiffany & Co., a luxury jewelry brand, has maintained its policy of not sourcing gems from Myanmar since 2003, citing ethical concerns.

The lifting of the US embargo on Burmese rubies in 2016 re-opened international markets to these precious stones, traditionally prized for their exceptional quality and deep red color. This created renewed demand and increased potential for legal export and trade of Burmese rubies. However, the Myanmar Gems Enterprise’s delay or postponement of reissuing mining concession permits likely constrains the industry's ability to scale up production legally and transparently. This would limit formal mining activities and potentially reduce ruby output from the Mogok region.

Political instability and ongoing conflicts in Myanmar since the 2021 military coup, along with ongoing international sanctions against the military junta, have created a challenging environment for mining and gemstone businesses. These conditions could hinder investment, disrupt supply chains, and encourage illicit mining or smuggling activities, affecting the Mogok ruby trade's stability.

The future outlook depends on political developments and government policies toward the gemstone sector. If the Myanmar government or relevant authorities resume the issuance of mining concessions and improve regulatory transparency, the industry could gradually expand and meet global demand again. Conversely, continued delays and instability may limit growth prospects.

Elsewhere, the Mae Sot gem market, which once supported a significant community of dealers, brokers, and gem shops, drastically retracted due to the Tom Lantos Act. Hundreds of Burmese gem cutters, carvers, dealers, and brokers were forced to look elsewhere to provide for their families due to the shrinking Mae Sot market.

The Rohingya humanitarian crisis in Myanmar has further exacerbated the Mogok gem trade's growing troubles, with the United Nations accusing Myanmar's military of committing genocide against the country's Muslim minority.

Despite these challenges, the Mogok gem industry continues to hold a special place in the world of jewellery. The most expensive colored gemstone ever sold, the $30.4 million dollar 25.59-ct Sunrise Ruby, was produced in Mogok.

In a bid to support the community, Nadthasiri and Jeffery have been supporting the New Blood school and orphanage for at-risk children not allowed to enroll in Thai government schools for the past 12 years. New Blood offers free 1st-to-12th grade schooling to economic and political refugee families in the town of Mae Sot on the Thai/Myanmar border.

American jewelers have expressed disappointment about the news of the disrupted gemstone production in Mogok, as they have been asking for fine Burmese rubies and sapphires. However, growing international awareness of Mogok's supply chain disruption will inevitably divert demand to more reliable sources.

As the future of the Mogok gem industry hangs in the balance, the focus remains on fostering transparency, improving governance, and ensuring ethical practices to secure a sustainable and prosperous future for this historic community.

1. The historic gem mining community of Mogok, known for its exceptional quality rubies and sapphires, faces potential obstacles in scaling up production legally due to delays in reissuing mining concession permits by the Myanmar Gems Enterprise.
2. In the wake of political instability and ongoing conflicts in Myanmar, particularly since the 2021 military coup, illicit mining or smuggling activities could become more prevalent, further affecting the Mogok ruby trade's stability.
3. As the Mogok gem industry navigates these challenges, focus remains on fostering transparency, improving governance, and ensuring ethical practices to secure a sustainable and prosperous future, especially considering the large demand for Burmese rubies and sapphires in international jewelry markets.

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