In a groundbreaking endeavor set to reshape the world of gemstones, Fuli Gemstones Ltd., a UK-based mining company, is gearing up to launch full-scale operations in China’s largest peridot deposit in 2024. Peridot, a rare semi-precious stone, has been in the shadows of the jewelry industry due to inconsistent supply, primarily sourced from small mines in Myanmar and Pakistan, with limited larger deposits in the USA. Fuli’s Chief Marketing Officer, Pia Tonna, sat down with Shilpa Dhamija to discuss the potential impact of this venture.
Peridot, the gem variety of the olivine mineral, has a history dating back to 1500 BC in Egypt. Unlike many gemstones, peridot is formed deep in the earth’s upper mantle, making it a unique addition to the world of jewelry. Until now, sporadic supply issues have hampered its presence in the market.
Fuli Gemstones’ journey to uncover this remarkable deposit began when they secured mining rights in the Yiqisong Nanshan region of China’s Jilin Province in 2016. Extensive geological surveys revealed that this site held the largest known peridot deposit on Earth, setting the stage for their upcoming full-scale mining operations.
“In 2016-17, we conducted extensive geological surveys and realized the tremendous potential of this deposit. We’ve been building the mining operations, and in March 2024, daily mining activities will commence,” Pia Tonna explained. The mine spans three square kilometers, with a 1.5-kilometer-long and 4×4-meter-wide tunnel, creating a mesmerizing experience akin to walking through a tunnel of peridots.
Fuli Gemstones has positioned itself to provide a significant share of the market, with the capacity to yield an astonishing 60 million carats of peridot annually, accounting for approximately 64% of the market share. Tonna emphasized their role as guardians of the peridot, aiming to collaborate with like-minded industry partners.
Environmental responsibility is a core focus for Fuli Gemstones. Tonna stated, “We repurpose everything that we pull out from inside the tunnel. In the deposit, there is olivine mineral and basalt rock, which can enrich agricultural lands. Smaller peridot materials can be used for hot-fixing. Olivine sand can absorb carbon dioxide equal to its body weight.” The company’s commitment is to utilize every material extracted and collaborate with partners for sustainable practices.
As for the cutting and polishing of peridots, Fuli Gemstones will handle these processes in-house while maintaining flexibility for partnerships, given the scalability of the mine. Tonna revealed ongoing discussions with Indian gem cutters in Jaipur, emphasizing the importance of preserving the stone’s beauty through expert cutting.
To ensure transparency and traceability, Fuli Gemstones is implementing a blockchain system. Tonna emphasized their unique approach, stating, “Our business model will be different. We would rather cut the stones in-house because we want to maintain the beauty of the stone. We aim to have a vertically integrated supply chain registered on our blockchain.” They are collaborating with Everledger to build this blockchain and record their environmental, social, and governance (ESG) practices.
While sharing insights from their geological survey, Tonna mentioned the largest peridot extracted weighed 301 carats, confirming that a substantial percentage of gems from the mine will be significant, suitable for both collections and mass retail production.
As for potential markets and high-jewelry interest, Fuli Gemstones has already attracted attention from buyers in Hong Kong and India, with strong interest from high-jewelry makers. Collaborations with local designers in the UK and educational seminars led by jewelry historians are part of Fuli’s strategy to reintroduce peridot to the forefront of the gemstone industry.
Fuli Gemstones’ ambitious mission to make peridot a prominent jewelry choice, combined with their eco-conscious approach and commitment to quality, hints at a promising future for the once-overlooked gemstone.
