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Colored Gemstone
Seeing Red in Greenland
True North Gems is mining for rubies in the arctic nation of Greenland.
By Sheryl Jones
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| Photo courtesy True North Gems |
Rubies and pink sapphires in Greenland? As strange as that might sound, the answer is yes. True North Gems, in partnership with the Greenland government, is mining rubies and pink sapphires on the world’s largest island, far from where these gemstones are usually found. It’s the Greenland government’s first commercial mining partnership of its kind and marks the beginning of an entirely new industry. Hayley Henning, vice president of marketing and development at True North Gems, says, “It’s not every day that one comes across a new ruby deposit — especially in the arctic. This is certainly the first of its kind.”
The mining of this corundum deposit comes at a crucial time in the ruby industry, when it is becoming harder to source gem-quality material due to very few new sources being discovered and older sources getting mined out.
The hard-rock corundum deposit was known to exist in the region. As Henning says, “It is near the surface, so you can visibly see it.” However, a great deal of time and effort went into putting an excavation plan in place. According to Nicholas Houghton, president and chief executive officer (CEO) of True North Gems, the project began in 2004 with a cursory look at the possibility of mining. Armed with the geological reports showing that the area had potential, True North Gems went back in 2005 to launch an exploratory program and moved forward to request permits and compile feasibility and economic studies. During this time, it built a relationship with the government. Since this was the government’s first potential mining operation involving a commodity, True North Gems created an open-door policy to help build trust. As Houghton explains, “Together with the Greenland government and communities, we are pioneering the country’s new mining industry. As a result, there has been a learning curve. All of this affected the time it took to successfully finalize all needed agreements with the authorities.”
Once the agreement was in place, True North Gems began work on creating the mine. Most mining operations expand on an already existing mine, but according to Houghton, “This operation is more along the lines of the existing diamond explorations in Canada. There was nothing there before, just the host rock outcrop.” Henning adds, “We had to build the foundation for the entire operation — the total infrastructure, including a heliport, roads, docks, processing plants, as well as staff accommodations.” Major buildings, including the corundum and gemstone recovery facilities, and work trail from the processing plant to the main mining pit area were completed at the end of third-quarter 2015. Production at the mine is scheduled to begin at the end of 2015.
Mining gemstones in Greenland’s desolate, cold and snowy climate would seem like a daunting challenge. Adding to that, 2014 was the harshest winter there in 20 years. However, Houghton says the local workers are used to the environment. And unlike in other mining locations in places such as Africa, where mining stops during the rainy season or to accommodate wildlife migration, they can mine all year round. In addition, as Houghton explains, “The mine is 3 kilometers from open water, so you don’t have to worry about hauling the rubies across the frozen tundra.” Two ports have been built for ships to transport goods and supplies along with a heliport for helicopters and planes to land.
Production will take place at the first mining site, which, according to Houghton, “was designed to have a life of nine years.” However, the written permit and agreement with the Greenland government is for 30 years. This will allow them to expand further at the initial mine site as well as other already recognized locations. “Environmental work has begun on the second and third locations,” says Houghton. The prospect of developing several other mining locations in Greenland is “very exciting because there is the potential for a consistent supply of material, which has been challenging in the past for ruby production,” Henning adds.
“The crystals are mostly small, which is the nature of corundum in general. It’s ideal for perfectly matched and precision-cut calibrated material,” says Henning. Rough material will be processed to a certain degree and sold through contract partners internationally. Houghton adds, “A tracking program has been developed that will allow the transparency of the rough leaving the mine and guarantee the ‘what, when and how’ for all production mined.”
The True North Gems venture marks the beginning of a new industry in Greenland that will produce jobs and economic growth for its inhabitants. This mining operation will not only change the lives of Greenlanders, but it will also have a large impact on the ruby market. Henning concludes, “Rubies have been worn for centuries. How wonderful to be a part of the first Arctic source of natural ruby and pink sapphire, ensuring the natural sustainability of untreated material for generations to come.”Article from the Rapaport Magazine - November 2015. To subscribe click here.
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