Emeralds from the Kagem mine in Lufwanyama. Picture: supplied
Tawanda Karombo
Gemfields is faced with a new export tax for shipments of emeralds from Zambia, where it operates the Kagem Emerald Mine.
The Zambian woes have been mounting for Gemfields. Last month, the company said a claim had been filed against Kagem by rival miner, Grizzly Mining, its sister company Pridegems Mines and proprietor Abdoulaye Ndiaye.
The claim relates to "alleged unlawful occupation" by Kagem of an area known as Kamakanga House as well as "conspiracy to injure business reputation" and goodwill.
Now, Gemfields is faced with a 15% export levy on emerald exports from Zambia. The tax came into effect at the beginning of this year and adds to other taxes such as royalties that the company had already been paying.
"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%," the company said.
Zambia, together with Brazil and Colombia are the world's largest exporters of emeralds.
"Gemfields has become aware that a new statutory instrument in Zambia dated 30 December 2024... came into effect on 1 January 2025," it said.
The tax "directly impacts the Zambian emeralds mined by Kagem“ which is 75% owned by Gemfields and 25% owned by the Zambian Government's Industrial Development Corporation.