PRESS FILE FAIRGEMS PROCESS  Summary I- Introduction.............................................................................................................................................. II- Fairgems Process – Genesis and Actuality...................................................................................... III- Origins....................................................................................................................................................... IV- Principles.................................................................................................................................................. V- Procedure : the supply chain............................................................................................................... VI- Choice of the location............................................................................................................................ VII- Future / Agenda....................................................................................................................................... VIII- The team ................................................................................................................................................... IX- Contacts.................................................................................................................................................... I- Introduction The supply chain for coloured gemstones has been strongly buffeted recently by a number of events. The scandal surrounding blood diamonds, a new awareness of the poor working conditions in the mining sector and the increasing effect of the imperatives imposed by sustainable development are all factors that have engendered a number of initiatives to promote better practices. Major initiatives have emerged in the industry with recently the certification of one gold mine in Bolivia and the launching of Fair trade gold in UK and Canada. In the coloured gemstones market and through FairGems Process, we hope that, bit-by-bit, we can encourage this industry to adopt a more ethical way of doing business. Our goal is to provide a guarantee for stones that are totally clean, both for those who participate in the supply chain and for consumers. We aim to give the standard jewellery and fine jewellery trades the means to reconcile high- quality products with environmental protection and social justice for local communities. To this end, FairGems Process is taking action especially in 3 fields of sustainable development. Environment The use of mining techniques that do not pollute and that preserve the environment Social welfare Employer-employee relationships that follow all ILO (International Labour Organization) rules, and additional social welfare actions (giving access to further education in the gemstone industry, helping miners build their homes etc.) Financial Welfare Higher quality commercial relationships that are more secure and reliable between those financially involved (distributors, jewel craftsmen, jewellers, etc.) and their customers.  II- FairGems Process – Genesis and Actuality FairGems Process is a process to guarantee the traceability of gemstones and the respect of environment as well as social welfare. Marc Dole, gem dealer for more than 25 years, has launched the project in 2005 in reaction to unfair practices in the industry. FairGems Process is a non-profit organisation. It is being developed in Sri Lanka – first pilot country - and can be duplicated all over the world. FairGems Process represents six years of work so far with an investment of 1.2 million dollars, which includes a high-level analysis laboratory (due to open in June 2011), a free educational centre withteaching such asgemmology and gemstone cutting (for teenagers of an extremely poor background) and a representative office on the mines sites. It has been sponsored by luxury brands (leather goods, watch industry, etc.) FairGems Process is governed by a charter, signed by 168 extractors, which represents 2,200 miners. III- Origins Marc Dole developed FairGems Process to counteract the unfair practices in the jewellery industry, which has been tarnished by numerous scandals over the last 25 years. For instance, the word "diamond" is still associated with "blood", despite the implementation of the Kimberley Process, which has become very controversial. Generally, gemstones are seen as "dirty” and have lost their true values. Due to an insufficient production, gemstones such as composite rubies, beryllium sapphires etc. have been put into the market to meet the growing demand. These practices resulted in the loss of consumer confidence and reduced consumption. It is important to note that those practices are not prohibited; however it is compulsory to inform the consumer. Therefore, when a stone is treated, it has to be clearly reported (CIBJO Standard). Unfortunately, this is rarely the case. Treated stone is one issue, the origin is another one. Many gemstones are sold today as Sri Lankan or Burmese implying higher prices while they are actually from Madagascar. Whether to indicate the origin of the stone or specify its possible treatment, transparency is required. Adding to this concern, still today, miners do not benefit from their hard work and struggle to live decently while the gemstones they are extracting commend expensive prices in high-end jewellery. The idea of fair practices was seen as a must; FairGems Process has been set up following two main principles: - Traceability of the stone (origin, treatments): Traceability is a fundamental element in the life cycle of a stone. Its origins must be clearly identified and the possible treatments that have been made need to be clearly disclosed. As a result, transparency to enable fair practices was seen as a priority. - Improving the living conditions of miners by improving the living conditions of the local communities they belong to (i.e building housing, creating training centres, etc.) The extraction and gems trade can be transformative if developed in a manner that will maximise the benefits to miners, local communities and to the country. With FairGems Process, we are convinced that it creates the opportunity to make a real and lasting contribution to Sri Lanka and its people through the implementation of communities programs and actions especially around the extraction area.  IV- Principles a) b) c) Origin of the stone: As we can guarantee the provenance of clothes or food, so FairGems Process guarantees to the final consumer the place and condition of extraction as well as the quality of coloured gemstones. Environment FairGems Process ensures that the production follows the principle of sustainable development such as preserving water resources, protecting local flora and fauna etc. Ethics and Social Business FairGems Process ensures to the final customer that money from gemstones extraction is not the result of child labour, abuses, whitewashing or funds any kind of terrorism or wars. 3% will be raised from each part of the supply chain (cf. below) and aims on the improvement of miners’ life as well as their family. Money gained from FairGems Process will directly be redistributed to the miners themselves by building training centres, houses, etc. As an example, FairGems Training Centre is one of the links of the chain. FairGems Training Centre offers to the most disadvantaged young generation a free education in the gemstone industry. Thanks to this training, they can benefit, through work, from their country’s natural resources. FairGems Training Centre has been built up through a French NGO “Bâtisseurs d’espoir”. This NGO is part of the FairGems Process.  V- Procedure: the supply chain To get gemstones traceability, FairGems Process federates every part of the supply chain around the process: 1- Producers (extractors) 2- Gem cutters 3- Laboratories 4- Gem Dealers 5- Jewellers 6- Consumers To be part of the process, the different stakeholders sign a charter in which they commit towards environmental issues as well as miners working conditions. By doing this, their business becomes part of the FairGems Process. A certificate proving its origin will accompany the stone. Certificate The certificate includes: - A picture of the rough gem - A picture of one inclusion of the stone in 3D, proving its unique identity - Two pictures of the polished stone - The extraction address - The gem cutter’s address - The name of the exporting company on the barcode - A page for the jeweller’s name - A page for the final consumer’s name - And of course, the traditional polished stone grading Furthermore, by being part of the process, each stakeholder of the supply chain will give a 3% back to the Professional Association composed of extractors, miners, gem dealers, and FairGems representatives in Sri Lanka.  The Supply chain Professional Association in Sri Lanka 3% FairGems Extractors Miners FairGems Office Picture of the rough 3% 3% 3% FairGems – GemCutter Bar Code – sealed FairGems Laboratory Certificate Bar Code – sealed FairGems - Gem Dealer Exporter Bar Code – sealed FairGems - Gem Dealer Importer Construction of a Training Centre, Miners’ houses FairGems - Jewellers FairGems - Final Consumer VI- Choice of the location As a first step, FairGems Process has been settled down in Sri Lanka, the first country test for the process. The country was chosen according to its level of acceptance. Sri Lanka, through its very strict regulation, has already implemented various programs to protect the environment and biodiversity. In order to extract gemstones, the Island uses the same methodology as its ancestors 2000 years ago. Wood, fern and natural products are used to construct the mines. Women and children are not allowed to work in the mines. Traceability protects the word « Ceylon » when used for gemstones and assures consumers on what they are exactly buying. With FairGems Process, they will buy the stone they thought they were buying (and get the certificate with it) – not a stone which has been undisclosed as for treatments or that is from another country. VII- Future / Agenda June 2011: - Opening of the Laboratory - Creation of the Professional Association composed of producers, miners, gem dealers, and members of the FairGems Process.  VIII- The Team Directors: - Marc Dole: Funder and Chairman Marc worked first as a sociologist for fourteen years and especially in private coaching on personal behaviour in public and social life for personalities. For personal and philosophical reasons, he moved into the Jewellery Industry in 1986 and funded the precious metal and gemstones bank with a 20 million Euros turn over. As mentioned above, he has launched FairGems Process project in reaction to unfair practices in the industry and used the media (paper and TV) to denounce those practices (2000, Capital – M6; 2008, Enquêtes Exclusives – M6; etc). - Aurélie Rumas Aurélie is the Director of the FairGems Training Centre (Bâtisseurs d’espoir) since the opening in 2007. IX- Contacts Marc Dole marc.dole@fairgemsprocess.com + +94 774069506