This content was first published on IGR – Italian Gemological Review no. 7 in 2019. The information provided here is therefore current as of the original publication date.
Even though Zambia ranks as the seventh producer of copper and the second of cobalt, over 60 percent of its population is living below the poverty line. Are at least the rich zambian emerald deposits significantly contributing to national GDP? There are legitimate expectations because the government of the country has been encouraging, since some time, mining activities through a policy of incentives and tax reductions apt to attract foreign companies. But it seems that revenues are not satisfactory and something changed as a 15% tax increase was recently imposed on some mineral exports. “When combined with the pre-existing 6 percent mineral royalty tax, Zambian emerald exporters must now pay an effective 21 percent turnover tax on their revenues” Adrian Banks, managing product director at the world famous industrial miner Gemfields, complained. “By contrast, the world’s second and third largest emerald exporters, Colombia and Brazil, levy 2.5 and 2 percent respectively, bringing about a watershed shift in tactical advantage” he bitterly added.
Gemfields’ auction held in Singapore in May 2019 set its all-time record totaling US$22.4m in revenues, with an average value of US$71.85 per carat, this bringing overall sales auctions’ revenues to US$589 million since July 2009. In the meanwhile ZCCM-Investment Holding (ZCCM-IH) announced to have acquired Gemfields’ additional 50% stake of Kariba Minerals Limited amethyst mines in southern Zambia, reportedly the world’s single largest producing site, the one the South African stock listed miner acquired in 2004 starting its activity in the country. For the financial year ended 30th June 2016, Kariba’s amethysts reported total revenues reached nearly US$ 1.6 million, an amount not as much profitable as total sales generated by Gemfield’s Zambian emeralds.
Gem News published on IGR – Italian Gemological Review #7, Summer 2019
