Sapphire Mining Market Global Industry Analysis 2016 - 2024 oct 2016 | Page 2

REPORT DESCRIPTION

Sapphire Mining Market: Overview
Sapphire is an aluminum oxide that falls under the corundum metal category. Under general use, sapphires qualify as a
jewelry item. Certain sediments or rock formations are the major natural sources for sapphires. Artificial or synthetic
sapphires are also manufactured for industrial purposes of the remarkable hardness of sapphires and of aluminum oxide in
general. These sapphires are used in some non-ornamental applications, including infrared optical components, such as in
scientific instruments, wristwatch crystals, movement bearings, and very thin electronic wafers, which are used as the
insulating substrates of very special purpose solid state electronics, especially integrated circuits and LEDs.
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Most sapphires come from countries with strict guidelines on how mining may proceed. In Sri Lanka, mining is regulated
so the land is protected from over-use. Here, sapphire mining is restricted to small-scale operations where heavy
machinery is forbidden. Natural untreated sapphires are rare and are mined in a manner that ensures a stable market and
secures the deposits for future generations. Strip mining such as in some emerald mining operations creates tremendous
environmental damage and only benefits a few large companies that have the capital for a large-scale operation. This
type of mining also results in a market that will fluctuate heavily when new deposits are found, as the new production will
flood the market and prices will drop. Some sapphire producing countries do not allow mining activities that damage the
environment or create unstable economic conditions. These responsible fair trade laws are regulated well and have
existed for years.
Sapphire Mining Market: Drivers and Restraints
The sapphire mining market is affected by certain positive drivers, namely the increasing demand of sapphire for the
production of jewelry and LEDs. Secondly, new deposits and mining sites have been recently discovered in parts of
Australia and South Africa that have attracted a lot of companies to start exploration and mining of the gem.
Despite the positive growth, the industry has been facing certain restrictions in terms of extraction methods and the
extent of extraction allowed. Government regulations have been put into place over concerns of ecological imbalance and
environmental hazards that sapphire mining has caused over the years.
Sapphire mining has had a major impact on agricultural lands as well. Intensive capital requirement and availability of
expertise for operations are also some of the factors that have hindered the progress of sapphire mining. Despite all the