Due diligence of gemstone mines for global jewellery company

Hand holding small gemstone, with light and magnifying

Due diligence of gemstone mines for global jewellery company

Kumi was commissioned by a global luxury fashion and jewellery company to undertake due diligence assessments of two mine sites from where it sources gemstones. The aim of the due diligence assessment was to provide the company with an in-depth understanding of the mine sites’ systems, processes and performance in managing human rights and environmental risks.

Stock pile and conveyors sorting gravel at stone quarry, aerial view

Mine site assessments a key part of the due diligence

Kumi undertook the following activities:

  • A desk-based assessment of relevant documentation such as policies, internal procedures, media reports and third-party consultancy studies of the mine sites.
  • Site visits of both mine sites. We employed our site assessment protocol which is based on good practice recommendations for social performance and responsible business conduct. Site visits involved visiting mining and processing operations; interviewing relevant stakeholders including senior management and responsible staff for functions including health and safety, environment, community engagement, security, human resources and production operations; worker interviews; and engagement with local community groups.

Actionable findings led to risk mitigation

Kumi compiled the findings and recommendations for next steps in a written report for the client company’s executive management team. Kumi also presented the findings and recommendations to the executive management of the mining company that operates both sites and supported both the client and the mining company in agreeing to a programme of risk mitigation measures.

Hand with glove, using tongs to move and separate small gemstones

Supplier due diligence delivered impact

As a result of our recommendations, the mining company has implemented comprehensive plans to address key risks that were identified in our assessment, including making substantial investments to improve the accommodation for contracted workers at both sites. Kumi has further supported the client company in monitoring the progress and effectiveness of risk mitigation measures undertaken by the mining company.