Gemfields halts emerald sales
By BUUMBA CHIMBULU
ZAMBIA, the world’s second largest emerald producer after Colombia, has suffered a significant setback in emerald mining, following the decision by Gemfields to halt the sale of emeralds from its Kagem Mine in protest against the 15 percent export tax which was reintroduced this year on January 1.
Gemfields, the majority owner of Kagem Mining Limited, last month highly criticised the Zambian government’s decision to reintroduce a 15 percent export duty on emeralds, effective January 1, 2025, citing the absence of prior notice or consultation.
Zambia first implemented the 15 percent export duty in early 2019.
It was later scrapped on January 1, 2020, following industry pressure.
“Kagem has paused mining from the start of 2025 as previously announced, utilising its upgraded wash plant to process its significant stockpiles. Emerald exports are, since January 1, 2025, paused while Zambia’s reintroduced 15 percent export duty remains in place. Kagem anticipates that the duty may be revoked and allow a commercial-quality emerald auction to go ahead in the first quarter of 2025, the company said in the operational update.
In December last year, Kagem Mining Limited announced a six-month suspension of mining operations at its mine in Lufwanyama District, Copperbelt Province, citing disruptions in the emerald market.
The company attributed the decision to an oversupply of Zambian emeralds sold at discounted prices during the latter half of 2024, further strained by conflicting auction dates among key Zambian emerald producers.
The halting of the sale of emeralds has been put in place despite Mines and Mineral Development Minister, Paul Kabuswe, officially announcing that Government was reviewing the 15 percent export duty last month.
“We are a listening government. We are studying the concerns that have been raised by stakeholders. We will meet them and do something about it,” Mr Kabuswe said at a media briefing.
Before that, at the Future Minerals Forum 2025 in Riyadh, Saudi Arabia, Jito Kayumba, Special Assistant to the President on Finance and Investments, also hinted that the Government was likely to suspend the 15 percent export duty.
Gemfields’ concerns were backed by the Federation of Small-Scale Mining Associations of Zambia (FSSMAZ) which joined industry leaders in opposing the duty, citing concerns over investor confidence, reduced production, and job losses.
FSSMAZ president, Joseph Mwansa described the tax as a deterrent to investment, warning that Zambia risks being labelled as Africa’s most taxed nation.
“The lack of consultation and research on the impact of this tax hike is concerning. Without thorough analysis of international best practices, this move will discourage investors, increase prices, and make Zambian emeralds uncompetitive in the global market,” Mr Mwansa said.
Following an announcement by Government on reviewing the tax measure, industry players hope to see the decision being reversed.
