Madagascar Loosens Gemstone Restrictions.
The government of Madagascar, which had placed tight restrictions on the export of its much-coveted gemstones, plans to open the island up to foreign traders, a mineral resources official told the International Colored Gemstone Association (ICA) Congress.
Right now only exporters that are registered as Malagasy companies have the right to export gemstones, a restriction that the government estimates has helped lead to millions of dollars worth of gemstones being smuggled out of the country.
Under new regulatory reform signed Feb. 18 by the Ministry of Energy and Mines, Madgascar will allow both local and foreign traders to buy rough and polished stones in privately operated gemstone markets, within which the government will provide support for security and the physical infrastructure of the markets.
The policy change delighted gem dealers, who have been griping that prices on gemstones from Madagascar have doubled and tripled since it was first discovered as a hot spot for pink and blue sapphire five years ago. Opening the market to foreign traders should help stabilize prices, and bring more colored gemstones into a supply-hungry market.
"The full potential of the island hasn't been touched," ICA President Joseph Menzie said. "It's developing fast as a production center for the gemtrade. It's going to become a much bigger center in terms of production in the future."
TrackBack
TrackBack URL for this entry:
