Emeralds from the Kagem mine in Lufwanyama District have been sold at auction for a total of US$10.8 million.
Proceeds from the auction will be fully repatriated to Zambia, with all royalties due to the Zambian Government paid on the full sales prices achieved at the auction, the company stressed.
The auction was of predominantly commercial quality rough emeralds mined by Kagem Mining Ltd – believed to be the world’s single largest producing emerald mine – which is 75% owned by Gemfields and 25% by the Government of the Republic of Zambia.
The sale, monitored by representatives of the Zambian Government, took place last week in the Indian city of Jaipur, the main global centre for emerald trading.
Bidding at the auction was thinner than usual, with several customers noting decreased availability of financing for gemstones in India due to allegations surrounding fraudulent bank lending to Nirav Modi and Gitanjali, two leading diamond and jewellery groups in India.
But Kagem remained optimistic for the future of Zambian emeralds in the world market, noting that its next auction, this time of predominantly higher quality emeralds, is presently scheduled to take place in Lusaka later this year.
“This auction sees Kagem pass US$500 million of aggregate revenue since Gemfields acquired its 75% stake in 2008. We believe this is the first time a coloured gemstone mine has transparently attained this milestone with publicly available data. The Zambian Government’s share of these revenues – in the form of royalties, corporation tax and dividends – exceeds US$105 million, or 21% of the revenue generated, a figure which also solidly exceeds Kagem’s aggregate net profits over the same period. We congratulate our hard-working team and our partners in Kagem, the Government of the Republic of Zambia,” Gemfields Chief Executive Officer Sean Gilbertson said.
The auction saw 31 companies placing bids, generating total revenues of US$10.8 million with an overall average value of US$3.05 per carat. Robust demand resulted in 95% of the offered carats being sold (or 90% of the number of lots offered).
Gemfields is a world leading supplier of responsibly sourced coloured gemstones. The company’s 27 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$506 million in total revenues.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields’ business model and has played an important role in the growth of the global coloured gemstone sector.
Ati the money will be ‘channeled’ back to Zambia – from India? Are you sure mwebantu? Awe, me I am not believing this. These minerals must have fetched 3 times more than the figure mentioned here. What’s happened to the rest of the loot?
This sounds good however, if the Government owned these mines I tell you Zambia can not be the same. Precious stones don’t need processing, they have already been processed by God. From underground straight to the world market but I always wonder why these precious stones should be in private hands. ZNS has the equipment that can be used to extract these minerals, they are not like copper which needs a lot of equipment to mine them, very few countries in the world that have been blessed with these things. Foreigners come from very far palaces just searching for these things right here in Zambia and when they get two or three pieces, they can even exchange them for an expensive vehicle or a mansion because they know what they have is worthy more than what they exchanged with. I’ M…
With your good grammar, it would have made so much sense if you actually knew what you were talking about. Would have been nice if you had actual facts about how the mineralisation actually is in comparison to say, copper. Or how the mining is done. Or at the very least, if you knew that ZNS owns its own emerald mine in the same area. And finally, that GRZ previously owned up to 65% of the same Kagem. But hey, who am I to judge the fact that some of us Zambians are quick to talk about things we understand nothing about?
So sale was in India….i remember old man Sata stating that he would not tolerate sale of our stones outside Zambia…come to think about it he made sense he was a true patriot not these sellouts today.
I HAVEN’T YET READ THE ARTICLE. BUT BLOGGERS ARE EMPLYING (THAT AUCTIONING OF EMERALDS HAS GONE BACK TO OVERSEAS) THEN WE DON’T THINK AS A NATION. HOW CAN WE GO BACK TO AUCTIONING EMERALDS OVERSEAS AGAIN? THIS IS EXPORTING DIRECT AND INDIRECT JOBS.
At least 2 auctions in the year of 5 should be in Zambia…thats how you promote tourism.
Sata is a patriot now only in death! “If a man deserves praise, give it to him when he is alive! He will never read his tombstone!” Under Fives’ hypocrisy!
I sometimes fails to understand last time l hear that kalulushj Germiston mine is the larger in Africa but there is dust road leading to the so -called mine, and many poor people live there.
Correction largest
I sometimes fails to understand, last time l heard that kalulushj Germiston mine is the largest in Africa, but there is dust road leading to the so -called mine, and many poor people live there.
$500 million sold but you only get $100 million ??
Blacks are losers and bottom feeders for ever…