Introduction to the Coloured Gemstones Working Group October

Introduction to the Coloured Gemstones Working Group October 15 th 2018 THEDRAGONFLYINITIATIVE. COM

The Coloured Gemstone Working Group thedragonflyinitiative. com 2

Types of mining ARTISANAL SMALL-SCALE SEMI-INDUSTRIAL LARGE-SCALE MINING • Owned and run informally • Does not structurally rely on permanent hired labour • Limited production capacity • Simplified forms of exploration, extraction, processing and transportation • Not capital intensive (little mechanisation) and uses highly labour-intensive technology (panning, hand-picking and crushing) • Owned and run informally or formally but there is an easily recognisable structure to the organisation • Structurally relies on permanent hired labour • Limited production capacity • Some sophisticated equipment (which may include partial mechanisation of some activities) for exploration, extraction, processing and transportation • A private or government-run incorporated business • Structurally relies on permanent hired labour • Limited production capacity • Some sophisticated equipment (which may include partial mechanisation of some activities) for exploration, extraction, processing and transportation • Formally listed, large private or government-run business • Structurally relies on permanent hired labour • Production capacity is within the nationally-defined categorisation for large-scale industrial mining • Predominantly sophisticated forms of exploration, extraction, processing and transportation • Highly capital intensive (much mechanisation) and uses low labour-intensive technology and has highly skilled personnel thedragonflyinitiative. com 3

Types of non-mining entities in the supply chain MICRO ENTERPRISES SMALL ENTERPRISES MEDIUM ENTERPRISES LARGE BUSINESSES • Operations of < 10 people, direct family • Organisations 10 - 49 employees • Organisations 50 - 250 employees • Organisations > 250 employees • Cutting and polishing; fabrication (setting of gemstones); traders; retail; wholesale Re-do table/diagram • Cutting and polishing; fabrication (setting of gemstones); traders; retail; wholesale thedragonflyinitiative. com 4

Implementation in the supply chain Self-Assessment thedragonflyinitiative. com Assisted Self-Assessment Independent Assessment 5

Training thedragonflyinitiative. com 6

Brazil Mine-to-Market White Topaz Project Brief: Identify and forge links with an ethical source of blue topaz. Facility Provision: • Capacity Building Trainings • Equitable Offtake Arrangements Project Design: Non-conflict sources of blue topaz identified, and mines engaged in dialogue with the downstream client. Beneficiaries must demonstrate progression towards better environmental, social and governance practices. A traceability platform is used to track supply of blue topaz from producers. Location: Brazil

Thank you Introduction to the Coloured Gemstones Working Group CONTACT Assheton Carter acarter@tdistrategies. com Julija Menise jmenise@TDIstrategies. com Annabel Britton abritton@TDIstrategies. com