By Derrick Silimina
The Jewellers Association Show (JAS) of India has described Grizzly Mining Company’s sixth emerald auction sale as progressive but urged the Zambian Government to avoid introducing higher taxes and duty which could cripple the emergent sector.
In an interview on the sidelines of the auction sale at Intercontinental Hotel in Lusaka, JAS Executive Member Ashok Maheshwari has urged Government to consider reducing the export duty on emeralds, which if not checked will negatively affect the sector.
“When we came for the last auction, we came to learn about the export duty of about 15 percent being introduced by the Government. I think this is not the time for putting in place all these taxes and duty because the overall global market is not performing well. I think this is not the right time because it will affect our buyers of finished products and once they shun our products, then we will also fail to come to buy the raw materials from here,” he said.
Mr Maheshwari has described Grizzly Mining Company’s documentation as straight forward for all bidders thus making the entire process “very transparent.”
“We are very happy to be here because being partners with them from the very first day, we have observed that their assortment of gemstones has improved a lot in terms of the material which is coming from the mines. The mining company is doing the best and this becomes very easy for us manufacturers to get the goods manufactured and supplied to our customers.”
And Mr Maheshwari has suggested that Grizzly Mining Company should enhance their price control for the manufacturers to strike a balance and meet the international demand for their buyers.
“We need a comfortable pricing structure because we find that the price keeps on getting higher. It might be that they have higher mining costs, but a fair price structure is key because we face challenges in prices of finished goods on the world market. So, we need control of prices on the raw materials so that we can supply the goods to our buyers at a reasonable price.”
He however commended Grizzly Mining Company for recording massive progress to their auctioning process since inception.
Mr Maheshwari, who is also Managing Director for Nakshatra Gems, a company that manufactures and trades in finished emerald products, observed that Africa’s raw materials and those from Zambia were on demand on the international market.
“Gemstone industry in Zambia is great because all the natural resource is from Zambia.”
He reiterated that Zambia’s wide scope of resources was key for emerald manufacturers which also helped contribute to the country’s treasury and job creation for the mining industry.
Other bidders expressed delight at the quality emeralds being auctioned by Grizzly Mining Company.
One of the partners at Cosmopolitan Trading Corporation from India, Divyank Bader, has considered Zambia’s precious stones to be of high quality, and that the future for the gemstone industry in the country was bright.
“The market for Zambian emeralds is good. Zambian emeralds are among the best as they are known for their good quality over the past years. They command a market demand across the world.”
Mr Bader noted that Grizzly’s Mining Company’s emeralds auction sale bridges the gap between buyers and suppliers as they bargain for quality thereby making them pay for the stones’ worth.
And Mr Bader has observed that going by Grizzly mining Company’s transparent auctioneering process, the sector is becoming well-organised.
“Over the years, I have seen that the gemstone industry in Zambia is becoming more organized and the future is bright. And going forward, I feel it will be more organised.”
On the pricing structure of the precious stones, the bidder stressed that there was need for the mining company to consider pegging the gems at the right price according to their quality.
“Basically, it has to be the right quality at the right price because the buyers around the world are slightly conservative right now in terms of pricing.”
Mr Bader described his experience in the Zambian auctioneering process as “awesome”.
“It’s been good ever since it started, and the process has been transparent over the years.”
And Ishmael Modi, a bidder from the Indian city of Jaipur, the main global centre for emerald trading, is optimistic for the future of Zambian emeralds in the world market.
Courtesy of SUMA SYSTEMS.
Unfortunately Zambians who are the rightful owners of these gemstones do not benefit. Minimally. Every Zambian woman should be able to afford at least one piece of jewelry from the minerals Zambia has and the towns we live in should show the wealth we have but alas, another foreigner dictating what duties should or should not apply, shameful
What these Indians are not telling you is that emeralds with a Zambian Certificate of Origin fetch the highest price on the world market.
Zambian emeralds have the highest purity of all gemstones the world over and at $6,000 a carat the wholesale buyers are still making a killing.
It’s time we started dictating that only 50% can be auctioned and the remaining 50% has to be turned into finished goods locally.
Everyone wanting our world renowned emeralds then has to come to Zambia to set up shop and then export the finished product.
At that point we have more value added and more revenue from within, forget the 15%, that’s champ change.
Epo mpelele,
BRM
What those Indians in the picture are doing is what Botswana has empowered its people through training to do in Botswana with their diamonds. Zambian govt should be sending 2 students every year to get trained in cutting, assessing errands
Kwena ba PF nama taxes yabo. You’re destroying the economy with your taxes because those taxes are passed onto the consumers. Trump managed to have a good economy because of tax cuts now you want to do the opposite. There is even nothing to show forth for taxes you over collecting
African needs control of her own gemstones. Time to cut out Indian middlemen is now. We really do not need them; the AU needs a will of heart and mind moving forward. No more corrupt Indian snake oil sales men and women needed.
Foolish – what do you take us for? We shall tax like it or not. Zambia is not a sharable organization and the last i checked Zambia was not designated a country foreigners come to get rich while making Zambia worse off.
“….Gemstone industry in Zambia is great because all the natural resource is from Zambia.”
Said the Indian.
Only because the corrupt Zambian foools allow raw emeralds to leave the country.
It must be noted that this auction being held in Zambia by Grizzly is only because of international court cases gonasse faces from the Jews.
Otherwise it is business as usual, all minerals exported raw without adding value and creating jobs in Zambia.
Cripple the sector???? Once u get the emeralds what will Zambian get?
This is the thinking of an Indian when he comes to do business in Africa, especially Zambia!! The Indian wants to run a business with abnormal profits, with no input costs to a point of crippling suppliers of inputs! We saw it with Binani, Vendata at KCM and the we see it all the time with Kamwala Traders, some millers and some Dairy Processors!! They never want to pay their suppliers on time as they keep making profit upon profit on the money generated from suppliers’ inputs. THE SOLUTION IS WHAT HAS BEEN PROPOSED BY BR MUMBA @1.1 and by JAY JAY @ 1.2, LET US ADD VALUE TO THESE EMERALDS AND MARKET OUR TOURISM WITH THESE PRECIOUS GEMSTONES(EMERALDS) AND OTHERS. WE SHALL CREATE MORE JOBS AND RAISE MORE REVENUE THAN STAYING FOREVER AT THE BOTTOM OF THE VALUE CHAIN!!
let there be tax that will benefit the zambian people for their given resources. build schools, hospitals and bring other developmental projects in areas where these minerals are found and stop exploiting the people.