Kagem attracts record buyer interest at Lusaka auction

Gemstone miner Gemfields’ latest auction of commercial-quality emeralds, held in Lusaka this week, attracted a record number of international buyers.

The auction of 35 schedules of emeralds recovered from the Kagem mine, in which London-based Gemfields holds 75% and the Zambian government 25% through the Industrial Development Corporation (IDC), for the first time attracted Chinese buyers, in what is traditionally a market dominated by companies from India.

Buyer Lok Chen of Cai Bao Cheng said the company had come from China to buy emeralds because Kagem was the largest emerald mine in the world, the colour and grading of emeralds was good and the mine was able to supply emeralds in large quantities.

Ministry of Mines Permanent Secretary Paul Chanda, who addressed buyers at the close of the auction, thanked participants for putting Zambian emeralds on the world stage.

“We have a good number of customers in this room, an indication that people from across the world are appreciating the quality of emeralds Zambia is recovering.

“The emeralds are competing on the international market, meaning that the country is getting the revenue it needs from this kind of business. People came from across the world to buy our emeralds, which means that more revenue is coming to government,” he said.

He also extended his approval that Kagem, which had been involved in this business for a long time, continued to grow.

“We have seen unprecedented growth over the years, and Kagem has become the largest emerald producer in the world, implying that Zambia has now overtaken Brazil and Colombia. This is because of the long-term vision that Gemfields has shared with the government of Zambia in this partnership,” said Kagem chairperson Dr Sixtus Mulenga.

“Should the newly introduced 15% export tax be removed, Kagem’s growth will be further enabled and, as Kagem, we are extremely happy; as a flagship company for the Zambian government and the Zambian people, we will continue to grow,” he added.

He indicated that Kagem was contributing to Zambia’s industrialisation and diversification programme in making the gemstone sector a major contributor to the national sustainable development scenario.

All the proceeds from the auction, which was attended by representatives of the Ministry of Mines and Zambia Revenue Authority, will be repatriated back to Zambia.