1. Jean Claude Michelou Vice President ICA PIGJE Karachi, Pakistan June 9 2012

2.  Fashion  Value  Cultural traditions

3.  Garments and cloth industry  Fashion accessories  Show business

4.  Creativity  Originality  Branding  Consumer identification  Luxury and romance

5.  Rarity  Clarity  Ethics

6. 6 Treatments not disclosed Extraction conditions Embargo Working conditions of the minors (photo: Jean-Claude Michelou)

7.  The Ethical Trade seeks to address the underlying causes of poverty through new forms of trading relationships rather than merely) tackling the symptoms by checking compliance with standards within individual operators and supply chains (Fair Trade Labeling Organization - FLO)

8.  Market access for marginalised producers  Sustainable and equitable trading relationships  Capacity building & empowerment  Consumer awareness raising & advocacy.  Ensuring decent Working conditions  Gender Equity  Elimination of Child Labour  Environmental sustainability  Transparency and accountability  Monitoring and Evaluation

9. CONSUMERS INTERNET JEWELLERY TV RETAILERS MANUFACTURERS and DESIGNERS GEMSTONE PROCESSORS and WHOLESALERS GEMDEALERS Final Value Jewellery And Manufacturing MINERS ASM, Medium Scale and Large Scale Mining MINERS ASM, Medium Scale and Large Scale Mining Extraction and processing (including gold and diamond)

10. 10 *Rough Cut: Sustainability Issues in the Coloured Gemstones Industry, 2010

11.  LARGE VARIETY OF STONES AND COLORS  PRODUCED IN 47 DIFFERENT SOURCE COUNTRIES  80% PRODUCED BY ASM, 90 % OF THESE IN DEVELOPPING AND EMERGING COUNTRIES  ORIGIN OF DEPOSIT EXTREMELY DIFFICULT TO TRACK  UNDLIKE DIAMOND NO FIXED PRICE NOR UNIVERSAL VALUE OF MATERIAL  IMPOSSIBLE TO ESTIMATE FAIR PRICE THERFORE, PREMIUM CONCEPT NOT APPLICABLE

12. AFRICA ASIA AMERICAS EUROPA OCEANIA East Africa Ethiopia Somalia Madagascar Kenya Uganda Tanzania Mozambique Zambia Zimbabwe Malawi Rwanda Central Africa Congo Angola West Africa Nigeria Mali South Africa Namibia South Africa Central Asia Afghanistan Tajikistan Kazakhstan Pakistan Eastern Asia China India Sri Lanka Burma Vietnam Thailand Cambodia Laos North America USA Canada Greenland Mexico Central America Dominican Rep. Guatemala Honduras South America Colombia Uruguay Peru Chile Bolivia Argentina Brazil Czech Rep. Russia AustraliaMiddle East Iran Turquey 47 MAIN GEMSTONE SUPPLIER COUNTRIES

13. CONSUMER Retailer Wholesale & Distribution Manufacturing RefiningSuppliers Cutting/ Polishing of Gemstones Laboratories Treatments of metals/ gemstones Watch Manufacture conditions Mining Metals Gold Platinu m Silver Others Gemstones Diamond Colored Organic Suppliers of Materials Hundreds of Countries with a myriad of cultures and standards.

14.  UNLIKE GOLD, NOT A COMMODITY  UNLIKE DIAMONDS NO CENTRALIZED MARKETING AND MARKET PRICE CONTROL  VALUE BASED ON REGIONAL AND SEASONAL MARKETING AND BRANDING STRATEGIES  SOCIAL CATEGORY IMPACT  INVESTMENT ONLY FOR TOP EXCEPTIONAL PIECES

15.  Development expectations limitations: ○ Lack of investment capacity ○ Lack of professional capacity or mining techniques ○ Low potential of deposit yield ○ Extreme nature conditions and limited accessibility ○ Lack of access to market and commercial platforms ○ Negative perception of country situation

16. LABOR ISSUES TRACTABILITY CAPACITY BUILDING AND TRAINING ISSUES ENVIRONMENTAL ISSUES WHO RECEIVES THE RETURNS TREATMENTS

17.  Human rights  Youth  Wages & Conditions  Safety conditions  Displacement of communities

18. Child Labor in Mining  Human rights  Youth  Wages & Conditions  Safety conditions  Displacement of communities

20. TOURMALINE ASM Damage to the environment

21.  Based on certification of country of origin  Establishment of 4 simple criteria 1. Development of value chain 2. Formal and certified exports 3. Sustainable poverty reduction and social responsibilities initiatives 4. Traceability

22.  ASM AND MEDIUM SCALE MINING  ADEQUATE MINING LAWS WITH ASM CONTENTS  ROUGH SUPPLY TO PROCESSING MARKETS  CAPACITY BUILDING IN ETHICAL MINING AND CSR INITIATIVES  CERTIFIED AND TRANSPARENT EXPORT PROCEDURES  THIRD PARTY CERTIFICATION SYSTEM  FULL DISCLOSURE OF TREATMENTS AND ORIGINS

24.  Training trainers- Lapidary School  Gemology /identification permanent training  Marketing and access to export markets  On site training of ASM on fundamental of gemstone mining :  Mining techniques  Safety and sanitation issues  Environmental issue  Gemological research and certification protocols

27.  Gem traders/ cutters/ exports offices  Secure environment and facilities for international buyers.  One stop shop Government control  Shipping Facilities  Gem testing Laboratory with international standards

29.  1 EDUCATION IN MINE CAMPS OR SURROUNDING SUB MINING COMMUNITIES  2. HEALTH AND FIRST AID CARE  3. SANITATION AT MINING LOCATIONS AND CAMPS  4. WATER,LIGHT AND COMMUNICATION ISSUES IN MINE CAMPS  5. MINE PITS AND TUNNELS MINING CONDITIONS  6. LAND COMMUNICATIONS  7. WOMEN PROTECTION- EDUCATION AND SUBSTANTIVE ACTIVITIES  8. ENVIRONMENT IMPROVEMENT AND PROTECTION

32.  Provide the jewelry industry with a mechanism and process to enable traceability and certification of country of origin of gemstones with ethical and transparency contents.  Contribute with this mechanism to improving social and environmental conditions along the value chain.  Meet the growing consumer and NGO requests for fair trade and ethical practices and products.  Branding of the producing-countries and credibility of the gemstone and Jewelry industry.

33.  LARGE MINIMG MINING COMPANIES ARE INTEGRATED FROM MINE TO MARKET  LARGE MINING COMPANIES BRAND THEMSELVES IN TERM OF ETHICAL PRACTICES FROM MINE TO MARKET  SAMALL AND ARTISANAL MINERS CANNOT ACCESS THE MARKET, ETHICAL CERTIFICATION PROCESS IS TOO EXPENSIVE AND COMPLEX FOR THEM.

34.  COUNTRY CERTIFICATION  BASED ON ELIGIBILITY AUDITED AND VERIFIED BY THIRD PARTY  TRANPATENT EXPORT WITH SEALED PACKINGS AND PARCELS AND PROPER TRACKING NUMBERS  INCOIVES AND PARCELS WITH TRACKING RECORDS

35.  Mining laws including the rights of artisanal minors  Training:  Miners:  Gems extraction techniques, safety, environment  Rough gemstones identification ( + value).  Gemmologists  Lapidaries (lapidary schools)  Gemological laboratories  Trading/buying platforms  Specific export procedures 35

36.  ADEQUATE MINING LAWS WITH MINING LICENSES FOR ASM  ENVIRONMENT PROTECTION LAWS  ROYALTY PAYMENT SIMPLIFIED SYSTEM  PERMANENT CAPACITY BUILDING ( mining, Lapidary, Gemology, export)  TRADING/BUYING AND EXPORT CENTER  GEM TESTING LABORATORY  POVERTY REDUCTION INITIATIVES IN MINING COMMUNITIES  NATIONAL GEMTRADE ASSOCIATION

37.  LEGAL PROCEDURES CERTIFIED BY PRODUCING EXPORTING COUNTRIES GOVERNMENT CERTIFIED DOCUMENTS TRANSPARENCY IN REMITTANCE OF EXPORT PROCEEDS EXPORT INCENTIVES ACCOUNTABILITY  IMPACT ALLOWS RELIABLE STATISTICS MONITORING OF THE SUPPLY CHAIN PROVIDES GOVERNMENT REVENUE INCREASE VALUE ADDITION TO EXPORTED GEMSTONES ELIMINATES SMUGGLING ELIMINATES MONEY LAUNDERING ELIMINATES CORRUPTION

38.  SIMPLIFIED EXPORT PROCEDURES WITH SEALING OF GEMSTONES FOR EXPORT  GOVERNMENT CONTROL AND CERTIFICATION OF EXPORT  TRANSPARENCY IN RAPATRIATION OF EXPORT PROCEEDS  TEMPORARY EXPORT WITH CARNET ATA  GOVERNMENT AND PRIVATE SECTOR PARTNERSHIPS/ALLIANCES  LAW ENFORCEMENT FOR ILLIGAL MINING AND PROTECTION OF MINING RIGHTS  ACCOUNTABILITY

39. ETHICAL GEMSTONE AND ORIGIN CERTIFICATE COUNTRY OF ISSUANCE Certifies hereby that the Gemstones consigned within the export document No-- -------- have been inspected and are compliant with the Ethical Mining and Trading National commitments

40. ETHICAL MNING AND TRADE C O U N T R Y C E R T I F I C A T E National Trade Orgs J E T S, RJC or Equivalent Independent organizations

41. GEMSTONE COUNTRY CERTIFICATE No… GEMSTONE PROCESSORS/ CUTTERS CERTIFICATE JEWELRY MANUFACTURERS RETAILERS CONSUMERS ETHICAL MINER 2010 ETHICAL MANUFACTURER 2010 ETHICAL TRADER 2010 ETHICAL RETAILER 2010

42.  MODEL OF CERTIFICATION OF ORIGIN  DEVELOPMENT IN PRODUCING COUNTRIES OF CASES MODELS OF ETHICAL TRADE AND MINING AND EXPORT CERTIFICATION  DEVELOPMENT IN PRODUCING COUNTRIES OF CASE MODELS OF CSR WITH PRIVATE NATIONAL AND INTERNATIONAL SECTOR IN PARTNERSHIP WITH GOVERNMENTS IN PRODUCING COUNTRIES  IMPLEMENTATION OF PROJECT LINKING ASM, POVERTY REDUCTION, CAPACITY BUILDING, TRANSPARENT AND FORMAL BUYING AND EXPORT PLATFORM AND PROCEDURES

45.  RAW MATERIAL ( local or imported)  G emstones  Gold and Silver  Diamonds  ADDED VALUE.( Local)  Labour  Manufacturing expenses  Marketing. Promotion and selling expenses

46. LOCAL Gemstones :  Emerald  Ruby  Peridot  Aquamarine  Tourmaline  Pink Topaz  Etc  Gold etc IMPORTED Gemstones Diamonds Gold Silver ?

47.  Labour :  Within application of local labour health regulations  Adequate and acceptable working conditions  Training and education:  Manufacturing  Processing  Design  Identification  Branding and marketing:

48. PROMINENT MINE OWNERS AND COMPANIES LOCAL COMMUNITIES TRADE ORGANIZATIONS (ICA-AGTA-CIBJO- TGJTA etc...) GOUP OF RETAILERS LARGE INTERNATIIONAL JEWELRY BRANDS SELECTED SPECIALIZED NGOs THIRD PARTY VERIFICATION DONERS AND INTERNATIONAL AGENCIES (World Bank, DFID, CASM, UN etc…) FEDERAL GOVERNMENT

50. The World Bank

51.  INCREASE TRANSPARENCY  CREATES BRANDING OPPORTUNITIES  INCREASE AWARENESS OF PARTICIPATING COUNTRIES  COMMUNICATION AND ADVERTISING OPPORTUNITIES  REDUCING INTERMEDIARY WITHIN THE SUPPLY CHAIN  ESTABLISH CUSTOMER CONFIDENCE