An independent report by consultancy firm SRK shows that Kagem mine, majority owned by Gemfields is set to produce 1.10 billion carats over a 25 year mine life, which is more than initially anticipated.
The company said the total amount of indicated and inferred mineral resource at the emerald mine is now estimated at 1.8bn carats worth of the green gemstone and beryl.
According to SRK, the company needs to spend $84 million over the first four years of the project, and a total of $516million over Kagem mine’s life to create an operation that will initially process around 90,000 tonnes of ore per year.
It said by 2018, output would ramp up to 180,000 tonnes per year, as it will add the Fibolele pit to the project.
Over its mine life, Kagem is now expected to produce 44.7 million carats per year on average.
Gemfiels said it would continue exploring the asset over the next few years to determine the further resource potential.
“As I have said on many occasions over the past few years, this operation has a bright future, is still maturing as an established producer, with much more yet to come,” said Chief Executive Ian Harebottle.
But why is Zambia still poor ?
Reading all the comments on this article it shows how shallow Zambians understand why they are poor. Every time one reads that we are poor because of investors. Have you ever asked yourself these questions
1. Where does the corporate tax that these mining companies go? How does the government use it?
2. Mining companies pay so much duties to government were go?
3. ZCCM-H gets dividends from the mining companies were goes that money go?
Zambia is poor not because of investors. Its poor because you have useless leaders who have no vision. All this money above goes to buy expensive cars for ministers, pay their travel allowances abroad. You are poor because of your own making and no one else.
Very good question. The reason: the World Bank’s exploitative demands and the politicians who follow them. This is why tens of billions of dollars in copper, cobalt and other materials have been leaving the country.
What is needed, is a government and international system that considers this to be a crime. For now, every citizen should be aware that neoliberalism is a false ideology that leads to the impoverishment of ordinary people, wherever in the world it is applied. Greece, Libya, Cyprus, Iceland – same policies, same result.
Why are we not surprised…we told 20 years ago that our copper in the ground will last maximum 10 years!!
You are dealing with Indians hear, they bribe the country with $400,000 in scholar ships which represents an hours digging. Indians are the worst racist investors, look at their businesses, only Indians who cant even speak English but have Zambian passports work there. Have you seen how their population has grown in Zambia ? while Immigration turns a blind eye and only harasses black Africans and whites who smoke Ganja like they have been told by some one high up in GRZ not to touch them. Indians do not develop the country, all monies are externalised.
Try if you can, to own a diamond, emerald or gold mine in Asia or most of Europe and come and tell me your experiences. Zambia is an unrepentant country following religiously all the rules that make nations fail.
THAT IS THE BIG QUESTION. WHY IS ZAMBIA STILL POOR? IAM TOLD ZAMBIA PRODUCES HIGH QUALITY EMERALDS IN THE WORLD. NO ANY COUNTRY PRODUCES THIS TYPE OF EMERALD AND EVEN THE QUANTITY WE PRODUCE MORE. THE PROBLEM IS THAT OUR GVT HAS NO POLICY TO EMPOWER ZAMBIANS SO THAT MANY CAN INVEST IN THIS BUSINESS. MOST OF THE SO CALLED ZAMBIANS WHO HAVE INVESTED IN THIS BUSINESS ARE FOREIGN ‘ZAMBIAN’ OF ASIAN ORIGIN. SECONDLY, OUR GOVERNMENT HAS FAILED TO APPRECIATE THE FACT THAT WE CAN MAKE MORE MONEY IS SALING EMERALDS THAN COPPER. SOME EMERALDS TYPES COST MORE THAT DIAMOND. WHY CANT WE LEARN FROM BOTSWANA WHOSE ECONOMY DEPENDS ON DIAMOND?
It boggles the mind why for 50 years none of our very own mining engineers,geologists can team up, lobby BOZ for a loan and open up just one truly indigenous mine.Do they lack courage or are not technically capable?It had to take the Senegalese who don’t even have mining experience to come from that far and get rich over our heads while we just watched. God help us!
@kabulyeni,that is the point and answer to those who are wondering why we are poor!! We lack the discipline to manage our own resources! How many Zambians have had emerald mines but each time they dug good stones just made money,neglected their workers,never re-invested went on spending sprees until they had to give away mines to Indians and Senegalese!! Until we develop discipline for business we shall always be poor but good only to work for others!! See how we have mismanaged parastatals;ZESCO,ZAMTEL etc till we run them to the ground and others come to revive them and take the money out of the country that these institutions will tick! With the history we have in mining we should have some good copper,emerald and other mines run by Zambians by now! But it is shameful non at all!