Marketing

Mine and Market

Sustainably sourced and responsibly mined in Greenland, in accordance with the codes of conduct issued by the United Nations, True North Gem’s Artic Rubies and Pink Sapphires are uniquely able to provide the gemstone and jewelry industry with the world’s first consistent and reliable supply of these gems.

While ruby and sapphire material has been mined for centuries in other parts of the world, the Aappaluttoq deposit in Greenland is a new discovery, and the first arctic deposit of its kind. Comparable to that found in Burma and Thailand, the material shows a pinkish purplish overtone, making it an obvious choice for lovers of Ruby and Pink Sapphire. It is different however, in that there is no heating or treatment required; a wholly natural and pure gem from an untouched, uninhabited and pristine environment.

Worldwide Ruby mining is a highly fragmented one; many are in unstable jurisdictions, leading to an inconsistent supply, or one that cannot be guaranteed. Under these circumstances, it is difficult to determine the size of the Ruby market, but it is believed to be somewhere in the region of $2 billion per year. According to the 2013 McKinsey’s report entitled “A Multifacted Future: The Jewelry Industry in 2020,” (see Industry Highlights) the international jewelry market will grow from 148 billion Euros to 250 billion Euros by 2020: a 68.9% growth.

Demand for jewelry shows growth every year, with the emerging markets of China and India being key. By 2025 Asia and India will constitute half the jewelry market, up from 12% in 2008 – 400% growth! What makes this interesting for the Greenland Ruby and Pink Sapphire supply is their love of colored gems, with deep reds and vibrant pinks being amongst their favorite, and prized for their cultural connotations.

With Contract Sales TNG will be able to supply gem dealers, jewelry manufacturers, watchmakers, designers and retailers with a consistent supply of responsibly sourced, perfectly precision cut and matching gems, which will enable partners to build their jewelry lines develop brands and expand their businesses.

Sorting and Selling

The True North mining operation in Greenland carefully extracts the ore and processes it to a concentrate at the Aappaluttoq mine site. Concentrate is shipped to True North’s facility in Nuuk where it is meticulously cleaned and sorted, according to color and quality. In order for the material value to be maximized it must be accurately graded and valued, only then will it be ready for export and sale.

Sales will be conducted on multiple tiers. Rough buyers will be contracted Sales Partners and will be a select few, chosen from the world’s most elite gemstone dealers. They will understand, agree and adhere to True North Gems’ strict compliance policies, and become licensed producers. In turn, they will be guaranteed a consistent and regular supply of gem material fitting their requirements. This ‘Sight Holder’ system will deliver a consistent funding stream and cash flow generated from auctions will provide premium pricing on a biannual basis.

Buyers of larger Rubies will do so at auction, possibly as often as 5 times per year. Cutters and polishers of such material will be invited to bid, based on their excellent cutting standards and ability to distribute downstream.

All steps in these processes are completely transparent guaranteeing that the True North Rubies and Pink Sapphires will be socially responsible and ethically sourced product.

 

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Gemstone Certification

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True North, in conjunction with the Government of Greenland, issues a Certificate of Authenticity. This certificate integrates with the RubyTrack ™ system in guaranteeing the integrity of the supply from the mine to the cutters and to the retail trade. It gives the cutter and consumer confidence in the origin and ethically mined Greenland ruby and pink sapphire.

True North is a member of three organizations that further support the Certificate of Authenticity:

Certificate of Authenticity

True North, in conjunction with the Government of Greenland, issues a Certificate of Authenticity. This certificate integrates with the RubyTrack ™ system in guaranteeing the integrity of the supply from the mine to the cutters and to the retail trade. It gives the cutter and consumer confidence in the origin and ethically mined Greenland ruby and pink sapphire.

True North is a member of three organizations that further support the Certificate of Authenticity:

Sulisitsisut: Greenlandic word for Employers Association. This means that all workers have rights and proper working conditions. It is a strong signal that all work is regulated.

Corporate Social Responsibility (CSR) Greenland: CSR is an organization under which members provide jobs and all taxes are paid. True North has agreed to help fund education of people working in this sector, as well as a cultural fund providing cultural activities for the local community at Fiskenaesset.

Transparency International Greenland: Transparency is an international organization that commits its members to execute transparency in everything they do.