Myanmar, also known as Burma, has long been known for its rich deposits of precious stones, particularly rubies, sapphires, and jade. The country's gem trade and industry have played a significant role in its economy, with the industry estimated to be worth around $31 billion in 2014. In this blog post, we will take a closer look at the history, types of gems, mining and production, market, regulations and policies, challenges, and opportunities of the gem trade and industry in Myanmar.

History of Myanmar's Gem Trade

The history of Myanmar's gem trade can be traced back thousands of years, with the country's rich deposits of rubies, sapphires, and other precious stones coveted by rulers and traders from across the world.

One of the earliest recorded references to Myanmar's gemstones comes from the third century BC when Chinese traders first began to trade with the Burmese. These traders were said to be particularly interested in Myanmar's rubies, which they believed possessed mystical powers.

Over the centuries, Myanmar's gemstones continued to attract attention from traders and adventurers alike. The Mogok Valley, located in the north of the country, became known as one of the world's most important sources of rubies, with traders from India, China, and Europe traveling there to buy and sell gems.

During the colonial period, Myanmar's gem trade came under the control of British interests, with the establishment of the Burma Ruby Mines Company in the late 19th century. This company, which was later renamed the Burma Mines Company, had a virtual monopoly on the trade in Myanmar's rubies and sapphires for much of the 20th century.

After gaining independence in 1948, Myanmar's government took control of the country's gem trade, establishing the Myanmar Gems Enterprise (MGE) to oversee the mining, production, and sale of gemstones. The MGE was tasked with setting prices for gems, issuing licenses to miners and dealers, and regulating the export of gemstones.

In the years that followed, Myanmar's gem trade continued to evolve and expand. The discovery of new deposits of gems, including high-quality jadeite in the Kachin State, helped to boost the industry. At the same time, the country's political and economic challenges, including sanctions and political unrest, also had an impact on the gem trade.

Despite these challenges, Myanmar's gemstones remain highly prized for their quality and rarity. Today, the country's gem trade continues to play an important role in the economy, with gems accounting for a significant portion of Myanmar's exports. While the industry faces many challenges, it also has the potential to grow and evolve in the years to come, building on a rich history that spans millennia.

Types of Gems Found in Myanmar

Myanmar is known for producing some of the world's finest gems, particularly rubies, sapphires, and jade. The country is also a significant producer of spinel, peridot, and other semi-precious stones. Rubies from Myanmar are particularly prized, with their deep red color and excellent clarity. Sapphires from Myanmar are also highly regarded, with their blue color and good transparency. Jade from Myanmar is known for its vivid green color and excellent translucency.

Mining and Production

Myanmar's gemstones are mainly mined from alluvial deposits, which are formed by the erosion of surrounding hills and mountains. These deposits are often found in riverbeds and are collected by artisanal miners using traditional techniques. Large-scale mining operations are also conducted by government-owned and private companies.

The mining and production of gems in Myanmar face numerous challenges, including poor infrastructure, limited access to modern technology, and political instability. Environmental concerns, such as deforestation and soil erosion, are also significant issues in the industry.

Statistics on gemstones that are mined and exported from Myanmar

Myanmar is one of the world's largest sources of high-quality gemstones, with a variety of precious stones mined and exported from the country. Here are some statistics on gemstones produced and exported from Myanmar, based on data from credible sources:

Jadeite: Myanmar is the world's largest producer of jadeite, a type of jade that is highly valued for its deep green color and translucency. According to the Myanmar Gems and Jewelry Entrepreneurs Association, jadeite exports from Myanmar reached a record high of $1.4 billion in the fiscal year 2014-15.

Rubies: Myanmar is also a major producer of rubies, particularly from the Mogok Valley region. According to a report by the International Colored Gemstone Association, Myanmar produced an estimated 90% of the world's rubies in the early 2000s. In recent years, the country has exported an average of $400 million worth of rubies annually.

Sapphires: Myanmar is home to some of the world's finest blue sapphires, which are found in deposits in the Mogok and Mong Hsu regions. According to the Myanmar Gems and Jewelry Entrepreneurs Association, sapphire exports from Myanmar reached $365 million in the fiscal year 2019-20.

Spinel: Myanmar is a major producer of spinel, a gemstone that comes in a range of colors and is often used as a substitute for ruby or sapphire. According to the Gemological Institute of America, Myanmar produces some of the world's finest red and pink spinels. In recent years, Myanmar has exported an average of $50 million worth of spinels annually.

Overall, gemstones are a significant contributor to Myanmar's economy, accounting for a significant portion of the country's exports. However, the industry is also facing challenges related to illegal mining and smuggling, as well as political and economic instability.

The Market for Myanmar's Gems

Myanmar's gem trade is highly international, with the majority of its gems exported to markets in Asia, Europe, and the United States. The country's gems are highly sought-after for their quality and rarity, with buyers willing to pay top dollar for stones from Myanmar. China is the largest buyer of Myanmar's gems, accounting for more than 50% of the country's gem exports.

Regulations and Policies

Myanmar's gem trade is heavily regulated by the government, with the Myanmar Gems Enterprise (MGE) responsible for managing the mining, production, and sale of gemstones. The MGE issues licenses to miners and dealers, sets prices for gemstones, and oversees the export of gems. In recent years, the government has made efforts to reform the industry, including the introduction of new mining laws and regulations aimed at increasing transparency and reducing corruption.

Challenges and Opportunities

Despite the challenges facing the gem trade and industry in Myanmar, there are also many opportunities for growth and development. With the right investment in infrastructure and technology, the country's gemstones could be mined and produced more efficiently and sustainably, benefiting both the industry and the local communities. The government's efforts to reform the industry could also improve transparency and increase trust among buyers and investors.

Conclusion

Myanmar's gem trade and industry have a long and fascinating history, with its gems prized for their quality and rarity. While the industry faces many challenges, there are also opportunities for growth and development. By addressing environmental concerns, improving infrastructure and technology, and implementing fair and transparent regulations, Myanmar's gem trade and industry can continue to thrive in the years to come.