History of Australian Sapphires

The idea of engaging the history of Australian sapphires may seem curious since Australia as a country is not known in recent times for its role in the sapphire trade. Major players in the sapphire trade being predominantly from Asia and parts of Africa. However, Australia, the land down under, has built up a top reputation in the mineral and natural resource trade, particularly in the trade of diamonds, the top precious stone in the world. However, the sapphire trade in Australia has had a relatively long tradition, spread over a hundred years. Here we will learn about the history of Australian sapphires, by looking at their origins, key moments in their development, and the status of Australian sapphires today.

The Emergence of the Sapphire Industry in Australia

The history of sapphire gems in Australia stretches back over 150 years. The first reporting of sapphire findings in Australia emerged in the 1850s, with the discovery of corundum gemstones near the town of Inverell in Northern New South Wales, along with finding around Cudgegong and Macquarie rivers, also located in New South Wales. The discovery of sapphire was partly driven by the pursuit of gold (Australia today is the country with the biggest gold reserves). In the same decade, other sapphire deposits were discovered 1854 sapphire was reported from the New England area of New South Wales. A significant sapphire took place to find in 1875 where sapphire deposits were discovered in the central parts of the state of Queensland. With various parts of Eastern Australia becoming new sources of the gemstone. The discovery of a number of sapphire deposits in Australia, in addition to the potential for newer sapphire findings, given the country’s size and strength in the mining industry, meant that the groundwork was in place for Australia’s sapphire industry to take off.

Many of the early starters who jumped on Australia’s sapphire mining potential were from other parts of the world. Whilst Australia is itself a country of immigrants, with its cultural and ethnic heritage going back to Great Britain. However, what is interesting is that many of the early sapphire mining and trading activity was driven by foreign entrepreneurs. With Russian and German entrepreneurs and their relevant stakeholders using their links to Europe to sell sapphires mined from Australia. The role played by Russian miners, many of whom were based in Central Queensland help drive the popularity of Australian sapphires, which gained good demand in European markets. Following WWI and later the Russian Revolution, these links to Europe broken down. In the course of the next few decades, the market for Australia went to something of cold storage, with little activity that extended well into the 1960s.

The Second Take Off

Things begin to change in the 1960s, with Europe and the rest of the developed world rebounding from an era of economic Depression, World Wars; as prices for sapphires began to takeoff; changes which began to change with improved mining methods brought forth by technological change that was being adopted by the mining industry. In the Australian market, a key change was made possible by the entry of Thai buyers during the 1970s, who opened access to markets for a wide variety of sapphire gemstones. For until then the focus of the Australian sapphire industry was on meeting the demand for high-end sapphires, which usually served the nobility and wealthy buyers in Europe. The new boom for a wider variety of sapphires of varying qualities meant that the demand base expanded, and with that also the supply of sapphires; which had the effect of pushing down the prices of sapphires. The decline in the price of sapphires meant that the sapphire industry began to slow down considerably. With the slow down in the mining industry in Australia, not potential, those with natural strength in sapphires, countries like Ceylon (Sri Lanka), Thailand, and Myanmar (Burma), taking over. Despite its fading position in the sapphire industry, all is not lost for the great mineral exporting nation.

Key Drivers for the Rise in Australian Sapphires

One of the key factors that drove the rise of sapphire mining in Australia, one that came to define the character of the industry is the advance and widespread advanced technology. Since much of sapphire deposits were found inland deposits that required considerable clearing, mining and cutting requirements. Whilst sapphire deposits in other countries, such as ones from South and South East Asia, are concentrated in alluvial deposits: which tend to require smaller-scale investment in machinery and infrastructure and human effort in getting the sapphires to market. In Australia, as a developed country, where there is more emphasis on machine operations, the introduction of mining machinery made the opportunity to mines these gemstones more appealing, and it was able to attract demand.

Conflict Between Small and Heavy Machine Mining

Whilst small scale miners were the ones who were historically leading the pack when it came to sapphire mining in Australia. However, given the fact that Australia, historically has been a country that has had a tradition in mining, with natural resources such as coal, aluminium, and other economic goods being sourced from this mineral-rich nation. And given the extent of these projects, and the complex industrial base that had built up around it; which meant that industry naturally tilted towards a large scale approach, with vast investments, involving the use of heavy mining machinery. Which tended to involve major mining projects, and hence attracted larger players. Which threatened to push the smaller players out. And given the influx of an array of mining technologies, many of them supporting larger-scale mining, in terms of scope and accessibility, meant that smaller, more independent mining companies, including proprietorship, began to spring up in the country. Which led to something of a standoff between the more established larger players and smaller, more localized sapphire miners in Australia. Faced with the prospect of conflict in the then growing industry, the Australian government stepped in. With a host of controls over the areas that could be mined using heavy machinery, hence encouraging the work done by smaller Australian miners. This is a key development that would come to characterize the history of sapphire mining in Australia. 

The Rise of Small Scale Sapphire Mining

Most of the best quality sapphire found in Australia are primarily mined by small scale miners. Which includes those who employ the aid of machinery at varying degrees. The machinery miners, as they are known, have expanded mining operations to new sapphire bearing ground, which owing to their smaller, more focused efforts have made the mines economically viable, where otherwise they would not. A supporting factor in the growth of sapphire mining and of business in Australia more generally is its attraction as a tourist hot spot. The significance of tourism, which has grown considerably over time, has also brought much-needed attention to the work done by these smaller miners, who are able to service the demand for gemstones from local and international jewellers.

Australia’s Sapphire Industry Today

In recent years, amidst strong competition from countries in Asia and Africa, Australia has begun to make a mark in the market for corundum based gemstones. This includes not only sapphires but also those for rubies as well. The newfound interest in Australian sapphires has been driven by a number of factors. One, the once dormant sapphire mines in Australia have begun to attract greater attention from foreign players. With companies like Fura, a Canadian miner, making land purchases in Queensland, with aim of taking advantage of this rich resource. In addition, growing support from local governments is also driving the change, as leaders see the economic potential that Australian sapphires hold, one that can supplement the strength of the economy in other mining industries. Another key factor that is driving interest in Australian sapphires is the sheer extent of the corundum deposits in the country. With the Queensland area holding some of the largest sapphire deposits in the world, and with potentially greater resources yet to be discovered. Further, driving the change has been the growing interest in a developed country option for gemstones. Australia, much like the U.S in recent years has been looked at as an attractive proposition owing to strong legal environments and value for business ethics and social responsibility that is been extolled in such countries. With sapphire exporting nations such as Myanmar increasingly coming under scrutiny for humanitarian reasons. Hence Australian sapphires are being looked at as an ethically attractive choice, whilst considering obvious differences in the character and colour of sapphires from this part of the world to those from other nations. Another interesting factor driving the enthusiasm for Australian sapphires is the need for locally sourced gemstones. This is an emerging trend and time will how far this will become significant.