Gemfields owned Kagem Mine in Lufwanyama district of Zambia’s mineral rich Copperbelt Province has been commended for realizing emeralds revenue of about $18.6 million in one auction saying the move shows an act of transparency. The number and spread of buyers for Zambian emerald is increasing with Chinese clients joining the list.
Kagem Mining is the world’s single largest emerald mine which is 75% owned by Gemfields and 25% by the Zambian government.Then Mines Ministry’s Permanent Secretary Paul Chanda confirmed to the Zambian Business Times – ZBT an exclusive interview that the actual numbers by Kagem mining was confirmed by government, which he said, is a positive gesture to the mining industry and has since encouraged other emerald mining companies to conduct public local auctions.
He added that it is important to conduct auctions within the country as it shows transparency in accounting for the sales done in the sector, drive business tourism arrivals and puts Zambia on the world map. Buyers are encouraged to include Zambia as a destination for their supply chain activities and that where necessary, the auctions can be done outside the country.
“The auction which was conducted by Kagem is impressive and among the offered parcels, we had only two which went back to the mine while the rest were sold, so they met the price which was targeted by the company, we also witnessed the increase in terms of customers and clients who came to buy, initially we had no customers in china but this time we have a lot participating which is a good move,” he said.
Chanda indicated that aside Kagem the country also has other notable mines producing emeralds like Grizzly Mining, which is second from Kagem, but is 100% privately owned. Other producers are Gemcanton and small producers like Miku mining also found in Lufwanyama district whose owner is Zambian who has partnered with Chinese investors with an idea of increasing production and scale up their operations.
He further mentioned that Grizzly mining has also been auctioning publically since 2017 both in the country and outside the country and he has confirmed that the company is equally performing well adding that small producers have also shown growth in the sector hence will soon compete with the bigger mines on the market.
The Mines PS said that government has in this regard promoted an initiative of working with banks to extend loan to local miners in emeralds to enable them produce large quantities, stating that government has noted a lot of potential in Zambian citizens to but that are lacking capital. He said banks and other financial institutions are encouraged to extend credit to miners, but the demand for collateral cover draws back local potential investors into emerald mining.
