Gemfields plc, the company that operates the Kagem emerald mine (“Kagem”) in Lufwanyama, has reiterated its commitment to the government and people of Zambia, pledging to continue to increase the benefit that the country receives from its gemstone resources.
Kagem, which is 25% owned by the Government of Zambia, produces approximately 20% of the world’s global rough emerald supply, with worldwide production estimated at US$500 million (ZMW2.6 billion) per year.
The company is pioneering a new approach to gemstone mining that integrates world-class mining with a strong marketing strategy and a commitment to local value addition in areas of core competence.
The approach has already turned Kagem around, from a long history of loss making to one where it has been able to increase achievable prices on the global markets almost tenfold and where it has been able to contribute more than ZMW687 million to Zambia’s direct foreign earnings over the past three years alone. All these earnings have been repatriated back to Zambia, where they have been used to settle old debts inherited from the previous management and continually reinvest in the Kagem mine and the global marketing of Zambian emeralds.
“Gemfields’ goal is to lead the way in terms of coloured gemstone exploration, mining, operational efficiency and global marketing, all the while ensuring that the benefits are fairly distributed among all our various business partners, investors and local stakeholders,” explained Chief Executive Officer Ian Harebottle.
Gemfields, a London-listed coloured gemstone mining company, acquired a 75% stake in the then bankrupt Kagem in 2008, with the remaining 25% being held by the Government of Zambia on behalf of the Zambian people.
The company is committed to the long-term re-capitalisation of the Kagem mine, and after an investment in excess of ZMW550 million, it continues to re-invest around ZMW150 million into the mine each year. This policy has been directly responsible for Kagem’s success in recent years, ensuring that Kagem – and Zambia as a nation – is increasingly recognised as a global leader in the coloured gemstone industry, and allowing Kagem to become the single largest emerald industry contributor to Zambia’s national economy, despite it being just one of Zambia’s numerous registered emerald producers and exporters.
Kagem employs approximately 650 people in Zambia, including permanent staff and contractors, of which only 46 or 7% are expatriates – all of whom hold valid and approved work permits. Kagem employees rank among the highest paid employees in the emerald industry in Zambia, with even the lowest paid permanent employees receiving in excess of ZMW2,200 per month including benefits.Each employee additionally receives production bonuses when defined thresholds are met.
Ends
“Gemfields remains committed to turning the coloured gemstone business into a transparent market allowing investors, local communities and national economies to benefit from our operations and expertise. Gemfields believes in and sees significant benefit in being fully transparent in all our dealings and partnerships. Full disclosure of information and transparency in our business process is a crucial factor of our success. Our mining ethics go beyond compliance as we aim to set new standards within this sector,” added Mr Harebottle.
About Gemfields plc
some one just wrote on fb: “We just need to nationalize emerald mines cause wat i saw this morning was pathetic,how do you have an area that produces the best Emeralds in the world without a road leading to those emeralds.We had to drive at 20km/hr along a mud infested road where looking on both sides you only see miserable looking locals in the area chewing on either raw mangoes or berries,the same people who run these emerald mines have built hotel’s in already Hotel Infested Countries but in Chief Nkana’s Area we don’t even have any Lodge to Receive the indigenous zambian.
When we talk about privatisation why don’t we look at how far we can go in the mining sector as well,the foreigners are minting money on a large scale while our children merely dream of three meals a…
Kagem is a very transparent and professionally run Zambian Co.
There is no need for Kagem to keep money outside of Zambia instead every single penny earned is brought to Zambia is reasonably spent for development of Kagem Mine and hence in development of Zambia
We are fouls I have no doubt. How can you supply 20% of world emaralds and live I such unexplained poverty. Take over this company please GRZ. I met am Indian in Australia who told a story that really shocked me. He said the owner of kagem has become very rich in India and he sponsors a religious festival in India were millions of Indians go to worship. He feeds all of them with Zambian money. These guys will continue to declare losses all the time. We are fools yes we are fools. If it were the whites having this mine in their country you would see the benefit to their country. Please somebody take over, nationalize all gemstone mines. Otherwise we will continue to be fools for the rest of zambian future.
It’s so sad that the beneficiaries of this enormous wealth we are blessed with are not Zambians but foreigners, ama Senesene, other crooks from Europe and Asia. There’s something wrong with our mentality. We have wealth but we rank among the most poverty stricken people on the planet. Does it make sense? We watch helplessly as the foreigners grab the loot, molesting the Zambian worker in the process. If this is not insanity and stupidit.y on a colossal scale, tell me what it is.
We Zambians and the way we think. That is the only reason we can present here. If foreigner come with borrowed money to come and invest and then externalise the proceeds, why can’t we borrow that money, buy necessary equipment, exculvate the Gems and sell them on our terms? How long yet will it take for us to think otherwise? Probably changing the way we train the you, so that they are not focused on being employed but be forecast on enterprenuership and self employment. That can be the engine of growth.
its not us the citizenry who are **@%**!!, its them leaderswe choose who are a let down.
we have been singing about the repossessing of kagem from time immemorial to no avail.
if we take the law in our own hands, you, together with the govt will be the first to cry foul.
so what should we do in order for us to enjoy the returns of our natural resources?
remember, God gave these resources to us zambians and not these foreigners.
Could be the reason some Lozis want nothing to do with Zambia!
real point bakalamba
Gemfields is a public company listed on the stock exchange in London. It has thousands of shareholders, some are larger than others, and anyone can buy shares.
Gemfields acquired 75% of Kagem in June 2008, when Kagem was heavily-indebted, loss-making and paying no corporation tax and little gemstone royalties. GRZ owns the other 25% of Kagem and has a director on the Kagem board. Gemfields and GRZ have transformed Kagem. In the last financial year, Kagem’s profits, corporation tax and gemstone royalties were a record high.
Transparency is critical in building the Zambian gemstone sector, so that Zambia gets the proper royalties and taxes from its gemstones. Without this, under-declaration of the quantity and value of exported gemstones will continue to deprive Zambia of income.
Gemfields leads by example when it comes to transparency: Kagem’s gemstone production figures (as well as the results of all gemstone auctions) are published for anyone to view at http://www.gemfields.co.uk .
Kagem’s unpolished gemstone production is only sold at auction, and not via other channels. Gemfields’ website contains the results of all the auctions. Except for a trial cutting and polishing operation at the Kagem mine itself, neither Gemfields nor Kagem own, operate or have stakes in foreign cutting and polishing operations. Vitally, the proceeds of the Kagem auctions are paid to Kagem in Zambia, meaning the money comes into Zambia, rather than remaining overseas, and thereby eliminating transfer pricing.
Just fool-ish minds of Africans no doubt. We are fool-s how on earth shall we live poor this way. Some countries have nothing to boast about yet rich. We have something yet extremely poor both in mind and economically.
1. WHY DOES BANK OF ZAMBIA ALLOW MONIES GENERATED BY ZAMBIAN MINES TO BE BANKED IN INDIA, UK, SWITZERLAND, CANADA, CAYMAN ISLANDS, SENEGAL ETC? DO WE EVEN HAVE MONETORY CONTROL LAWS? IF THAT $500 MILLION IS SAVED IN ZAMBIAN BANKS, THE INTEREST RATES WILL BE LOWER & THE LOCAL BANKS WILL BE FORCED TO LEND TO BUSINESSES, HOME-OWNERS ETC.
2. HOW DOES $500 MILLION WORTH OF GEMS LEAVE THE COUNTRY WITHOUT DETECTION BY ZRA? YET WHEN I COME WITH A PAIR OF JEANS FROM RSA I’M CHARGED AT CHIRUNDU?
3. WHY ALLOW THE EXPORT OF RAW GEMS & COPPER YET THEY CAN CREATE JOBS BY CUTTING CENTRES IN ZAMBIA (LIKE BOTSWANA DE BEERS DIAMOND CUTTING CENTRE), COPPER CABLE PLANTS, MOTOR PLANTS ETC. THE VALUE OF A CUT GEM CAN BE THREE TIMES UNCUT. THE VALUE OF 1KG OF COPPER CABLE IS TWICE THAT OF 1KG UNPROCESSED…
Marie Anne,
How can you advise the masses when you can not even understand what is written in the article, very embarrassing my sister! ” WORLDWIDE PRODUCTION = US$500m PER YEAR” Meaning total revenue for all the emerald mining companies on this planet earth inclusive of KAGEM. ” More than ZMW687m ( US$138m) the past three years in foreign inflows” I hope this helps in clarifying the misinterpretation of facts be it deliberate or ignorance, please assist in having all emerald mines in the world deposit the money (US$500m per year) in our beloved country!
REYJAS INVESTMENTS LIMITED is a Zambian company and the share orders are Zambian citizens, we with to register our company with KAGAM MINE as suplying company as advetised in the Zambian news papers.
we would like to recieve the quetionere throuw our email.
Regards
I would like to find out about the registration of companies is there any progress or what happened.