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Viewing cable 08NAIROBI2722, NO SALES OF KENYAN RUBIES TO BURMA

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Reference ID Created Released Classification Origin
08NAIROBI2722 2008-12-05 09:03 2011-08-25 00:00 UNCLASSIFIED Embassy Nairobi
R 050903Z DEC 08
FM AMEMBASSY NAIROBI
TO SECSTATE WASHDC 7820
INFO USDOC WASHDC 3120
AMEMBASSY ANTANANARIVO 
AMEMBASSY BANGKOK 
AMEMBASSY BEIJING 
AMEMBASSY COLOMBO 
AMEMBASSY DAR ES SALAAM 
AMEMBASSY DUSHANBE 
AMEMBASSY HANOI 
AMEMBASSY KABUL 
AMEMBASSY KATHMANDU 
AMEMBASSY LILONGWE 
AMEMBASSY LONDON 
AMEMBASSY MAPUTO 
AMEMBASSY NEW DELHI 
AMEMBASSY PARIS 
AMEMBASSY RANGOON 
AMCONSUL HONG KONG
UNCLAS NAIROBI 002722 
 
 
STATE FOR EEB/ESC/TFS JOHN MARSHALL KLEIN, EAP/MLS LAURA SCHEIBE, 
AF/E, AND AF/EPS 
 
COMMERCE FOR BECKY ERKUL 
 
LONDON AND PARIS FOR AFRICA WATCHERS 
 
E.O. 12958:  N/A 
TAGS: ETRD EMIN ECON PREL PGOV PREL EFIN BM KE
SUBJECT:  NO SALES OF KENYAN RUBIES TO BURMA 
 
REF: STATE 127059 
 
1. Summary: According to three senior Ministry of Environment and 
Mineral Resources officials, Kenya does not export rubies to Burma. 
End Summary. 
 
2.  In separate December 4 meetings with Kenya's Commissioner of 
Mines and Geology Lojomon Biwott, acting Chief Geologist Shadrack 
Kimomo, and Warder of Mines Evans Osumo, econ specialist learned 
that Kenya does not export rubies to Burma.  According to these 
three senior Ministry of Environment and Mineral Resources 
officials, over 90% of all Kenyan gemstones are exported in raw form 
to India, China, Thailand, Europe, and the United States.  Kenyan 
rubies are not exported to Burma, which is viewed as a major 
competitor with better quality gemstones.  Most of the processing 
and polishing of Kenyan gemstones are done in India and Thailand; 
the refined rubies are then re-exported to other countries. 
 
3.  Biwott and his Department of Mines and Geology colleagues 
emphasized that Kenyan government agents inspect and seal all 
exports of precious gems, issue certificates of origin, and collect 
income and royalty taxes.  Kenya supports the Extractive Industries 
Transparency Initiative and the Kimberley Process certification 
scheme but is not a member since it does not have diamonds. 
Moreover, given Kenya's limited mineral base (mining earned the 
country $200 million in 2007), the government finds the scheme too 
expensive to implement.  Kenya is a member of the Inter-Governmental 
Mining Forum, a voluntary organization of 42 countries involved in 
promoting sustainable mining. 
 
4.  The Kenyan government is not involved in ruby mining.  The 
gemstone sector is dominated by many small scale miners and few 
mechanized miners.  Ruby gemstone mining in Kenya took off in the 
1970s when American geologist John Saul discovered a major site in 
the Mangare Swamp section of Tsavo National Park near the southeast 
border with Tanzania.  Tsavo remains the major ruby mining area in 
Kenya.  Other promising ruby deposits were found in West Pokot 
(2001) in the vicinity of Lakes Baringo and Bogoria, the Waseges 
River valley (2002), and the Simba area (2205) southeast of Nairobi. 
 The company Saul founded, Rockland Kenya, Ltd., is the biggest ruby 
producer in the country.  Other ruby mining companies are Baringo 
Stones, Equator, hard Rock, and Aqua.  After dipping to 2,310 kilos 
in 2003, ruby production has surged the past three years from just 
over 5,000 kilos in 2005 to nearly 9,000 kilos in 2007.  The 
industry, however, earned less than $1.5 million in 2007. 
 
RANNEBERGER