Jan 8 – Gemfields, a leading producer of colored gemstones, has appealed to the Zambian government to scrap the 15% export tax on emeralds, citing risks to the sector’s growth and investment potential.
Zambia, the world’s second-largest emerald producer after Colombia, reinstated the tax on January 1. The levy had been suspended in 2019 to encourage the sector’s development.
Gemfields, which operates the Kagem emerald mine in Zambia, described the tax as a threat to the industry’s sustainability. The company stated it would engage with authorities to seek the tax’s removal or a reintroduction of its suspension.
The Guernsey-based company, which also owns the Fabergé jewelry brand and a ruby mine in Mozambique, reported that Kagem contributed 31% of its revenues to the Zambian government through mineral royalties, corporate taxes, and dividends in 2023. Gemfields holds a 75% stake in Kagem, while the government owns the remaining 25%.
The Kagem mine has recorded $1.1 billion in cumulative emerald sales revenue since 2009, according to the company.
