Gemfields halts sale of emeralds from Kagem mine
Gemfields has announced a temporary stop of sale of emeralds emeralds from its Kagem mine in Zambia. The move follows the reintroduction of the 15% export tariff on emeralds.
The company had to suspend production due to market oversaturation from discounted emeralds, and the tariff could further complicate their operations, especially since it would increase their effective revenue tax to 21%. According to Gemfields’ CEO, Sean Gilbertson , this increased tax burden could necessitate workforce reductions, as noted by Gemfields’ CEO, Sean Gilbertson.
Kagem mine
Located in the southern part of Zambia’s copper belt, this open-pit mine lies in the centre of a mineral-rich province called the Ndola Rural Emerald Restricted Area. Following the liberalisation of mining in the early 1990s, Zambia has become one of the most valuable emerald sources in the world.
The hope is that the Zambian government will reverse this decision, which would allow them to proceed with emerald auctions in Q1 2025. On the flip side, production at their Montepuez ruby mine in Mozambique has resumed, which is a positive sign despite the recent disruptions. The company has confirmed that the construction of a second processing plant at this site is progressing on schedule and within budget, with completion anticipated by the end of the first half of 2025.
