Gem Mining in Madagascar

Australian, Sri Lankan and Thai mechanized mining sites are starting to decline because deposits have been depleted. Furthermore, their situations have been rendered even less advantageous by increased production costs and on-going difficulties in relation to access to land for mining. This has resulted in sapphire becoming more and more scarce and as a result, more expensive to acquire.

Besides a vast array of otherwise under-exploited natural resources, Madagascar has become a powerhouse for gemstones. It is speculated to be the richest place in the world for gemstones, and production is just getting started. The island is shaping up to be a major gem source for the coming century. For anyone wanting in, the time is NOW.

With the spread of the news that the first alluvial deposits of gemstones were discovered in late 1998 in Ilakaka, not only was there on onslaught of local hand-miners that came to give their luck a chance, but there were also large numbers of dealers from the South and South East Asian regions who ventured out to this remote island, hoping to make a fortune for themselves. Sri Lankan gem dealers from Ratnapura, Beruwala, and Badulla have already set up gem stalls on site. The Sri Lankan community is now 200 people strong. At present, Sri Lankan, Thai and African dealers are engaging in purchasing gems from hand-miners in Ilakaka and are exporting them to Sri Lanka and Thailand.

Madagascar, with its large quantities of fine gemstones, is considered to some professionals to be the new Sri Lanka. The sapphires are known for being as attractive as those mined there and it is said that some of the sapphires labeled Ceylon, are indeed of Madagascar origin.

Madagascar is now eager to allow mining exploration through higher-tech exploitation procedures, to develop its rich resources. The government is keen on developing gem activity by encouraging gem-mining joint ventures between local reputable companies and various foreign investors/partners.

Production of commercial sapphire is likely to increase with the settlement of mechanized mining. Output will rise thanks to large-scale open-cut operations involving heavy earth moving equipment.