Gemfields asks Zambia to reverse emerald export tax

Gemfields

08/01/2025 08:23

Jan 8 (Reuters) - Coloured gemstone producer Gemfields
 GEMGE.L   GMLJ.J  has asked the Zambian government to remove a
recently re-introduced 15% export tax on emeralds to avoid
hurting the sector.
    The southern African country, the world's second largest
emerald producer after Colombia, re-introduced the tax on Jan.1,
after it was suspended in 2019.
    "The company will engage with the Zambian government to seek
the re-introduction of the suspension of this export duty or to
remove it from the legislation given the impact on sector
sustainability and investment attractiveness," Gemfields said in
a statement.
    The Guernsey-based miner and marketer of coloured gemstones
operates the Kagem emerald mine in Zambia, one of the biggest in
the world. Gemfields also owns the Faberge jewellery brand and a
ruby mine in Mozambique.
    Kagem paid an effective 31% of its revenues to the Zambian
government in the form of mineral royalty, corporation tax and
dividends, the company said in 2023. Gemfields owns 75% of
Kagem, with the government of Zambia holding the balance.
    The Kagem mine has reported cumulative emerald sales revenue
of $1.1 billion between 2009 and 2023, according to Gemfields.
         

 (Reporting by Nelson Banya
Editing by Christina Fincher)
 ((Nelson.Banya@thomsonreuters.com;))