Zambian Tax Authority Raids Gemfields Mine

RAPAPORT... The Zambian Revenue Authority (ZRA) launched aninvestigation into alleged tax evasion at the Kagem emerald mine, owned by Gemfields. In an unannounced visit to the mine last week, ZRA servedtwo search warrants on Kagem Mining and Limpopo Polygraphs, a South African company thatconducts periodic testing at the Kagem asset. Authorities seized documents and files including thoseallegedly used to "evade the payment of value-added tax (VAT), income tax, withholdingtax and other taxes," the company said. This marks the latest in a number of problems Gemfields hasfaced this year. In July, its Ethiopian asset was overrun by a mob, and thatsame site was looted earlier this month. In April, the company was served witha lawsuit over alleged human-rights abuse at its Mozambican mine. Gemfields holds a 75% share in the Kagem emerald mine. Gemfields will provide further updates on the situation atKagem as pertinent information becomes available, the miner added. The company's stock price fell 4% on Friday after theannouncement.Image: Kagem Emerald Mine