REG - Gemfields Group Ltd - Zambia re-introduces 15% export duty on emeralds

GemfieldsAnnouncement

08/01/2025 07:00

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RNS Number : 5527S  Gemfields Group Limited  08 January 2025

Incorporated in Guernsey. Guernsey registration number: 47656

South African external company registration number: 2009/012636/10

Share code on JSE:GML / AIM:GEM

    ISIN: GG00BG0KTL52   |   LEI: 21380017GAVXTCYS5R31

("Gemfields" or the "Group" or the "Company")

 

Zambia re-introduces 15% export duty on emeralds

LONDON, 8 JANUARY 2025

Gemfields has become aware that a new statutory instrument in Zambia dated 30
December 2024 and which came into effect on 1 January 2025 (S.I. No. 88 of
2024, the Customs and Excise (Precious Stones) (Export Duty) (Suspension)
(Revocation) Order, 2024) has revoked the 2019 suspension of a 15% export duty
on precious gemstones. This directly impacts the Zambian emeralds mined by
Kagem Mining Limited ("Kagem") which is 75% owned by Gemfields and 25% owned
by the Zambian Government's Industrial Development Corporation.

This 15% export duty now applies on top of the existing 6% mineral royalty tax
and meaning that Kagem faces an effective tax on revenues of 21% (in addition
to corporation tax of 30%). Brazil, Colombia and Zambia are the world's three
largest emerald exporters. Brazil's aggregate tax on revenues is 2% (in the
form of mineral royalty) and Colombia's aggregate tax on revenues is 2.5%
(being a 1.5% mineral royalty and a 1% national emerald fund contribution) in
addition to corporation taxes of 34% and 33% respectively.

In 2023, when no export duty was in place, Kagem paid an effective 31% of its
revenues to the Government of the Republic of Zambia in the form of mineral
royalty, corporation tax and dividends.

The 15% export duty was originally introduced at the start of 2019 by the
previous Zambian government and after considerable effort by the Zambian
emerald sector, the export duty was suspended at the end of 2019 and ceased to
apply from 1 January 2020.

Gemfields notes that there was no notice or prior consultation regarding the
re-introduction of the 15% export duty. Gemfields understands that several
additional measures have also been introduced in other areas of the Zambian
economy to enhance Zambian Government revenues in 2025.

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.

The Company will keep the market informed of further developments.

 

 

-ENDS-

 

 

Further information on Gemfields Group Limited can be found at:

 GEMFIELDSGROUP.COM (http://WWW.GEMFIELDSGROUP.COM)

 

To join our investor mailing list, please contact us on:
ir@gemfields.com (mailto:ir@gemfields.com)

 

For any press enquiries, please contact Helena and Albertina:
helena.choudhury@gemfields.com (mailto:helena.choudhury@gemfields.com) /
albertina.namburete@gemfields.com (mailto:albertina.namburete@gemfields.com)
 

 

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) no. 596/2014 which forms part of domestic UK
law pursuant to the European Union (withdrawal) act 2018 ("MAR").

 

 

ENQUIRIES

 

 GEMFIELDS                         Sean Gilbertson / David Lovett / Ian Hughes

                                   ir@gemfields.com (mailto:ir@gemfields.com)

T:  +44(0) 20 7518 3400
 SPONSOR (JSE)                     Investec Bank Limited
 NOMINATED ADVISER                 Panmure Liberum

(AIM) & BROKER
Scott Mathieson / Kieron Hodgson / Amrit Mahbubani / John More
                                   T: +44(0) 20 3100 2222
 GEMFIELDS HEAD OFFICE PR, LONDON  Helena Choudhury / Albertina Namburete

                                   helena.choudhury@gemfields.com (mailto:helena.choudhury@gemfields.com) /
                                   albertina.namburete@gemfields.com (mailto:albertina.namburete@gemfields.com)

 ADDITIONAL INFORMATION ON GEMFIELDS

 Gemfields is a world-leading responsible miner and marketer of coloured
 gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald
 mine in Zambia (believed to be the world's single largest producing emerald
 mine) and the Montepuez ruby mine in Mozambique (one of the most significant
 recently discovered ruby deposits in the world). In addition, Gemfields also
 holds controlling interests in various other gemstone mining and prospecting
 licences in Zambia, Mozambique, Ethiopia and Madagascar.

 Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of
 exceptional heritage - enables Gemfields to optimise positioning, perception
 and consumer awareness of coloured gemstones through Fabergé designs,
 advancing the wider group's "mine and market" vision.

 Gemfields has developed a proprietary grading system and a pioneering auction
 platform to provide a consistent supply of coloured gemstones to downstream
 markets, a key component of Gemfields' business model that has played an
 important role in the growth of the global coloured gemstone sector.

 

 

GEMFIELDS

GEMFIELDS.COM (https://gemfields.com/) (https://gemfields.com/) | INVESTORS
(https://www.gemfieldsgroup.com/) (https://www.gemfieldsgroup.com/)
|FOUNDATION (https://www.gemfieldsfoundation.org/)

INSTAGRAM (https://www.instagram.com/gemfields/)
(https://www.instagram.com/gemfields/) | FACEBOOK
(https://www.facebook.com/Gemfields/) (https://www.facebook.com/Gemfields/) |
X (https://x.com/GemfieldsLtd?lang=en) | YOUTUBE
(https://www.youtube.com/channel/UCArCE0JFtakTP-tHq6v0KVg)

 

FABERGÉ

FABERGÉ.COM (https://www.faberge.com/) | INSTAGRAM
(https://www.instagram.com/officialfaberge/)
(https://www.instagram.com/officialfaberge/) | FACEBOOK
(https://www.facebook.com/OfficialFaberge)
(https://www.facebook.com/OfficialFaberge) | X (https://x.com/OfficialFaberge)
(https://x.com/OfficialFaberge) | YOUTUBE
(https://www.youtube.com/user/officialfaberge)

 

KAGEM MINING LINKEDIN (https://www.linkedin.com/company/kagem-mining-ltd)

MONTEPUEZ RUBY MINING LINKEDIN
(https://www.linkedin.com/company/montepuez-ruby-mining)

 

 

 

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