Okay now let us talk about gemstones in malawi.
The aim of this thread is to give basic information on the the opportunities for small and medium scale entrepreneurs in the utilization of Gemstones found in Malawi.
The aim of this thread is to give basic information on the the opportunities for small and medium scale entrepreneurs in the utilization of Gemstones found in Malawi.
Gemstones are just minerals that are prized for their beauty, durability, and rarity.
NB: Good value is only realized if the gemstones are cut and polished.
Picture below shows gemstones called Rubbies
NB: Good value is only realized if the gemstones are cut and polished.
Picture below shows gemstones called Rubbies
Uses of Gemstones: mainly in jewelry. but also, antiquities
The quality of a gemstone is determined by color, shape, size and clarity (I will discuss these later on). Let us get the basics first.
Types of gemstones found in Malawi:
Rubbies, Sapphire, Aquamarine, Amethyst, Jade, Tourmaline, Smokey Quartz, Rose Quartz, Agate
Rubbies, Sapphire, Aquamarine, Amethyst, Jade, Tourmaline, Smokey Quartz, Rose Quartz, Agate
Areas that have gemstone occurrence:
Mzimba, Rumphi, Chitipa, Ntcheu, Neno, Mangochi, Zomba, Mulanje, Chikwawa
Mzimba, Rumphi, Chitipa, Ntcheu, Neno, Mangochi, Zomba, Mulanje, Chikwawa
How they occur:
Gemstones are found in a variety of host rocks including mica pegmatites, metamorphic rocks, ultramafic rocks and karoo volcanic rocks. (Do not worry about the geological terms at this point since this thread is just about the basics)
Gemstones are found in a variety of host rocks including mica pegmatites, metamorphic rocks, ultramafic rocks and karoo volcanic rocks. (Do not worry about the geological terms at this point since this thread is just about the basics)
Demand of Gemstones:
There is a need to establish the value of the current demand as well as expected demand growth both domestic and export markets.
However the recorded value of gemstones mined in 2018 was worth an estimated 362 million kwacha.
There is a need to establish the value of the current demand as well as expected demand growth both domestic and export markets.
However the recorded value of gemstones mined in 2018 was worth an estimated 362 million kwacha.
Quality of Gemstones:
i. Color: Good gemstones show good color if lit above white paper. (we use what is known as “white-paper test”) I will explain later about this in a separate thread.
i. Color: Good gemstones show good color if lit above white paper. (we use what is known as “white-paper test”) I will explain later about this in a separate thread.
ii Size
The bigger the gemstone the more carats you get after cutting it. NB: 80% is lost due to cutting.
Rule of thumb: 1 gram of uncut gemstone = 1 carat after cutting
The bigger the gemstone the more carats you get after cutting it. NB: 80% is lost due to cutting.
Rule of thumb: 1 gram of uncut gemstone = 1 carat after cutting
iii. Clarity
Clarity in gemstones is affected by intensity of flaws. Flaws affect the optics of a gem appearance and its structural integrity.
Flaws include cracks, voids open cleavages and inclusions.
Rule of thumb: less flaws = higher value of the gemstone
Clarity in gemstones is affected by intensity of flaws. Flaws affect the optics of a gem appearance and its structural integrity.
Flaws include cracks, voids open cleavages and inclusions.
Rule of thumb: less flaws = higher value of the gemstone
iv) Shape:
blocky, chunky and rounded shape is ideal for cutting to reduce waste during cutting or faceting.
blocky, chunky and rounded shape is ideal for cutting to reduce waste during cutting or faceting.
Grading and pricing
There is no single universal grading system of gemstones.
Rule of thumb: grade according to quality and size
Price of gemstones depends on willing seller and willing buyer. There is a need for setting up a marketing strategy.
There is no single universal grading system of gemstones.
Rule of thumb: grade according to quality and size
Price of gemstones depends on willing seller and willing buyer. There is a need for setting up a marketing strategy.
We have done the basics now let us deal with how you can get in Business of Gemstones.
Decide what part of the gemstone business you want to do and type of gemstones you want to buy and sell. Then Establish your market and identify your sources of gemstones or areas to Mine.
Remember you can obtain them from various places so you might need to travel a lot.
Remember you can obtain them from various places so you might need to travel a lot.
Gemstone business value chain:
Buying / mining gemstones ➡️Lapidary (Grading, cutting and polishing) ➡️ Sales and Marketing.
Buying / mining gemstones ➡️Lapidary (Grading, cutting and polishing) ➡️ Sales and Marketing.
Required paperwork:
Business registration.
Get a license from the Department of mines to enable you to stock, buy and sell gemstones ( estimated cost Mk10 - 20K).
If you intend to mine: get a Mining Claim Licence at the department of mines (estimated cost Mk 10 -15k)
Business registration.
Get a license from the Department of mines to enable you to stock, buy and sell gemstones ( estimated cost Mk10 - 20K).
If you intend to mine: get a Mining Claim Licence at the department of mines (estimated cost Mk 10 -15k)
If you intend to export the geological survey department will do inspection and give you an Export permit and you are required to pay a royalty fee.
MRA will also charge you a processing fee which you need to pay before export.
MRA will also charge you a processing fee which you need to pay before export.
Basic tools (est. US$ 9 000)
Cobbing hammer, Loupe, Lamp with solid opaque shade, Fluorescent Light, Incandescent Light, Tweezers, White paper, Millimetre gauges, Optivisor binoculars, Gram scale, Carat scales....
Cobbing hammer, Loupe, Lamp with solid opaque shade, Fluorescent Light, Incandescent Light, Tweezers, White paper, Millimetre gauges, Optivisor binoculars, Gram scale, Carat scales....
....Chelsea filter, Pocket diffraction grating scale, Dichroscope, Gravity Travel Kit, Gem Shovel, Analogue Faceting machine, Ultratec facet saw kit.
I will later discuss the use of each of those tools. You can also research on other advanced tools and their cost.
I will later discuss the use of each of those tools. You can also research on other advanced tools and their cost.
Consumables ( estimated cost around US$1000)
cutting and polishing: Silicon Carbide Paper.
grinding and polishing: Diamond Powder, Cerium Oxide and Crome Oxide, Expandable Drum and Grinding Wheels.
cutting and polishing: Silicon Carbide Paper.
grinding and polishing: Diamond Powder, Cerium Oxide and Crome Oxide, Expandable Drum and Grinding Wheels.
The mining method is basically trenching. picks, shovels and wheel barrows etc are the only equipment required for small scale mining (est cost US$ 800)
Then factor in your labour costs + trained cutter and Or cost of buying rough gemstones.
Then factor in your labour costs + trained cutter and Or cost of buying rough gemstones.
Basically under US$15000 you should be able to set up a viable Gemstone business provided you: identify reliable sources, type of gemstones you want to deal with, Market, Add value (Grade, cut and polish) and have a robust marketing and sales plan.
I suggest people coming together combining skills and capital is the good option to get such an enterprise going.
Register with The Gemstone Association of Malawi (GAM) and attend all relevant trainings available.
Seek advice from geologists at the Geological survey.
Register with The Gemstone Association of Malawi (GAM) and attend all relevant trainings available.
Seek advice from geologists at the Geological survey.
finally learn more about the gemstones and their trade.
You can get more information online from the
Gemological Institute of America
International Gemological Institute
All the best i hope this thread will help you.
You can get more information online from the
Gemological Institute of America
International Gemological Institute
All the best i hope this thread will help you.
