Opinion: Opinion: Kashmiri Sapphires Set To Dazzle The World Again

A decade after a 19.88-carat Kashmir sapphire shattered auction records in Geneva, the potential return of the priceless gems from the strife-torn region to global markets is on the horizon.

The cushion-shaped sapphire, known as the Star of Kashmir, surprised buyers in 2013 with a sale price of nearly $3,483,017 (approximately Rs 20 crore). Now, officials claim that more peacock blue-coloured sapphires will be mined in the Paddar region, one of the most inhospitable terrains in the bordering state.

Kashmir sapphires are revered as among the finest in the world.

This resurgence in the Kashmiri economy marks a significant shift, seemingly overcoming longstanding hurdles related to mining and marketing rights. It’s reliably learned that local traders, previously resistant to outsider involvement in mining and marketing the gems, had persistently demanded exorbitant prices, hindering progress.

However, the landscape is evolving.

A pivotal moment for these sapphires came after traders from Kashmir were advised by the state-owned Gems and Jewellery Export Promotion Council (GJEPC) to adhere to global trade norms. In essence, they were advised to auction the gems, mirroring the international diamond trade, and evaluate offers from buyers. The traders have since embraced this guidance, which emanated from the Commerce Ministry through the GJEPC.

“Kashmir sapphires are very unique. Mining and trading of these gems need to be streamlined,” said Sabyasachi Ray, executive director of GJEPC. “We have explained to those involved with the trading of sapphires the importance of doing the business methodically and as per international norms. The traders should not be raising unrealistic demands,” he added.

Kashmir’s Tryst With Gems

However, implementing such measures in Kashmir, India’s most troubled state bordering Pakistan, poses considerable challenges. The allure of gems has historically captivated tribes spanning the vast stretch between Afghanistan and Kashmir. Gemstones have long been understood as transformative assets by tribal communities in Afghanistan and Pakistan. GJEPC officials caution that Kashmiri traders could still resist conforming to international guidelines, potentially reverting to old practices.

Recognising the sensitivity surrounding gem trade in Kashmir, the GJEPC is diligently navigating these complexities, cognisant of the pivotal role local traders play. The Himalayan region’s gems boast a rich historical lineage, extending from India to Afghanistan.

Consider Afghanistan’s gem mining heritage, which dates back approximately 2,300 years to the era of Alexander the Great. By the 10th century, the gem mines of northern and eastern Afghanistan, bordering Tajikistan and Pakistan, were famed for their rubies, sapphires, tourmaline, lapis lazuli, and topaz. Today, gem mines in northeastern Afghan provinces serve as revenue sources for the Taliban regime. Similarly, in neighbouring Pakistan, gem mining and trade remain contentious, often sparking tensions over the extraction of high-value gemstones.

A Determined Government To Go Ahead With Mining

However, the Indian government is determined to avoid such controversies in Kashmir. The government, specifically the Commerce Ministry, has set up a detailed roadmap for mining sapphires from Kashmir. A preliminary survey for the sapphire mines in the Paddar region has been completed by the Geological Survey of India (GSI). Now, there will be scientific exploration of the area. Extreme geographical conditions and lack of resources have hampered the commercial exploitation of this valuable stone. The status of the preliminary survey was discussed by top officials at a meeting of the board of directors of the J&K Minerals Limited here, chaired by the state’s chief secretary Arun Mehta. A few months ago, some of the sapphires were taken to Jaipur for display at an exhibition where the Kashmir sapphires generated tremendous interest among the traders of the desert state.

A top official of the state told this reporter the Kashmir stones are considered unique across the world, even better than the ones found in Mogok, Myanmar. “The Kashmir sapphires are the best in the world and we will be seeking the best price for them. Plans for mining are firmly in place,” Arun Kishore Kotwal, a top official of the mining department in Jammu & Kashmir, said in a telephonic interview. 

Kotwal said the Kashmir blue peacock-coloured sapphires are in limited quantities and will be produced in phases. The total amount of sapphires to be mined would be in the region of Rs 3,000-4,000 crore. “And then we will work on the next phase,” said Kotwal. 

JKML, it has been reliably learnt, has awarded the exploration of sapphire mines to Mineworks, a Delhi-based company. Mineworks will jointly execute the project with JKML. The move, however, has triggered some anger among the business community in Kishtwar, which did not like an “outsider” being granted the contract. 

However, Mineworks is not a pushover company. Managed by the Tongya family, the company is among the top Indian gems companies with footprints across the world. Recently, one of its subsidiaries acquired an extremely rare, high-quality Zambian emerald that was sold at an auction in Lusaka for an undisclosed amount. The gemstone, gorgeously green and wonderfully translucent, was christened Insofu, which means ‘baby elephant’ in the local Bemba language of Zambia.

At 6,100 carats and 1,220 gm, the gem is one of the largest emeralds to be mined in the world.

The company also specializes in blue sapphires, boasting fascinating collections of blue-coloured stones, among them two rare, flawless oval-shaped sapphires — called the Sunburst Sapphires — weighing 151.15 carat and 127.68 carat.

Not All Are Satisfied

However, not everyone in the state is happy with the decision of the state government to collaborate with a Delhi-based company. The Jammu and Kashmir Industries and Commerce Department feels that JKML could have avoided the joint venture and done the mining on its own. Other business associations in the state have also expressed dissatisfaction with the agreement. Commerce Ministry officials did not respond to such fears from the state bodies.

The ministry acknowledges the importance and class of these gems. Market experts say Asia has some of the best gems across the world, with Kashmir leading in peacock blue sapphires, followed by Myanmar, Sri Lanka, Thailand, Vietnam, Cambodia, Madagascar, and Australia. The Kashmir sapphire, claim experts, displays a unique character that signifies the most desirable and expensive of gems.

A Landslide And A Treasure

The British wanted to take charge of the princely state of Jammu & Kashmir, but their attempts were thwarted by the then Maharaja Ranbir Singh, who was loyal to the empire but denied them authoritative privileges over his land and people. Interestingly, four years before the Maharaja’s death in 1881, a landslide occurred in a harsh and remote cirque valley of the Zanskar range. At 13,000 feet above sea level, the landslip exposed a 100-feet wide area of pegmatitic rock with blue crystals.

The sapphires were first traced in 1881 by some local traders who lived in the valleys of Zanskar and Lahul. They traded the gems for salt. By 1882, parcels of blue gemstones began to reach Delhi, Punjab, Himachal Pradesh, and across India. The Maharaja became extremely concerned about the lost fortune and immediately ordered his army of soldiers to guard the mines. Eventually, the British government took charge of the mines. As a result, the original old mine, which produced a limited assortment of high-quality and large-size Kashmir sapphires, was entirely depleted in 1888.

Thereafter, some of the gems were traded at the marketing centres of Kullu and Shimla by a syndicate of jewellers. Eventually, the Geological Survey of India concurred with the discovery of sapphires in a glacial cirque above the village of Sumjam, on the southwest slopes of the rugged Zanskar range.

Why Commerce Ministry’s Intervention Is Timely

The work of exploration and security of mineral wealth and assets is looked after by the Jammu & Kashmir Mineral Limited. There have been occasions when the operations of JKML have drawn flak from local traders, many even alleging that it undertook mining operations but there was no clarity about the collection of the gems. As per rules, the mining operation needs to be completed between July 1 and September 18, 2024. Thereafter, the gems will be sent for processing into finished products.

The Commerce Ministry’s intervention is both crucial and timely because there have been occasions when the exposed mineral wealth was stolen by smugglers. Now, the ministry hopes its intervention and that of the state government will stop such smuggling.

Sanjay Kumar, SP Kishtwar, has clarified recently to mediapersons that there were a few reports of smuggling, but it has stopped. A few smugglers have been booked too.

Currently, the mines are buried under ten feet of snow. And there is high security. Once the area opens up by the end of May, mining will start. And then, one of the world’s top-class sapphires will make its way to the Indian and global markets.

(Shantanu Guha Ray is the Asia Editor of Central News Agency. His book ‘The Diamond Trial’ came out in 2019).

Disclaimer: These are the personal opinions of the author.