Gemfields Appeals Against Zambian Emerald Export Tax

Gemfields, a leading emerald producer, is urging the Zambian government to reconsider a 15% export tax on emeralds. The tax, reinstated in 2023, could harm industry sustainability and deter investment. Gemfields operates the prominent Kagem mine and owns a substantial stake alongside the Zambian government.

Gemfields, a major player in the coloured gemstone market, has formally requested the Zambian government to reverse a recently reinstated 15% export tax on emeralds. The tax, which was lifted in 2019, was put back into effect on January 1, 2023, posing challenges to the sector.

A spokesperson from Gemfields emphasized the necessity of engaging with the authorities to either reintroduce the suspension of the duty or eliminate it altogether to maintain the sector's sustainability and investment appeal. The company operates the Kagem emerald mine, one of the world's largest, and also holds interests in Faberge and a ruby mine in Mozambique.

In 2023, it was reported that Kagem contributed an effective 31% of its revenue to Zambia through mineral royalties, corporation tax, and dividends. The mine has amassed $1.1 billion in emerald sales from 2009 to 2023, with Gemfields owning 75% and the Zambian government holding the remaining shares.

(With inputs from agencies.)