Problems in Mining

Illegal Mining

Illegal mining must be defined as a type of mining that is against the law, which includes a number of possible cases like mining in protected areas, mining without permission, working in mines or on mining concessions of another company without their permission, extraction of protected resources, etc.

Gemrock Peru does not engage in illegal mining and does not cooperate with illegal miners. Here is what we do to make sure that our company is not related to illegal mining:

Gold: We are not sourcing gold for our jewelry from illegal rainforest mining operations. An easy way to make sure that our gold and silver is legal is to buy it only from sources that provide an official invoice and to refrain from any cash payments. If there is a bank involved and a paper trail (official documentation) does exist, then one can be sure that the provider is legal.

Rough Rock: We are not sourcing rough rock or crystals from providers that may be engaged in illegal mining. Again, avoiding cash payments and buying only if a legal invoice is provided is a way to make sure we deal with a legal miner.

Pyrite: 95% of Peruvian Pyrite comes from Huanzala mine in Ancash. And basically 100% of this material has been stolen at night from inside the nickel mine. In January 2022 the mine management denounced a nationwide network of organized crime in connection with drug trafficking to be managing the pyrite trade and asked the Peruvian state prosecutor to investigate and act against this illegal network. The document given to the Peruvian state prosecutors mentions Gemrock Peru as the only Peruvian crystal exporter having an exclusive buyer contract for pyrite with the mine and not belonging to this network.

Informal Mining

Informal mining is a type of mining where the mining concession holder does hold the required documents and permits for the mining, but all his mining activities are not reported to the authorities, meaning the entire mining operation sells the extracted minerals against cash payment (no paper trail, no tax payments) and miners are working without formal labor contracts. They don't receive labor benefits like vacations, health insurance, accident insurance, life insurance or retirement benefits. If something happens to them, they are on their own. It is commonplace for Peruvian crystal exporters to source their materials from such informal mining operations.

We are refusing to accept rocks or crystals from providers that want cash payments. All our crystals are sourced from miners that provide us with formal invoices. All payments are made via bank wire. Our expenditure for sourcing therefore is visible to governmental authorities which are now able to identity the source for our material and check on the provider any time they wish. Our procedures do force our providers to have their permits and paperwork in order and become formal and legal miners.