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Emeralds can finance Zambia’s K173.0 billion ($11.3 billion) 2022 budget,” prays UPPZ’s Charles Chanda By DERRICK SINJELA United Prosperous and Peaceful Zambia (UPPZ) President Charles Chanda says as anticipated the K173 billion (US$11.3billion) 2022 budget is heavily influenced by the changes in the political landscape, evidenced by the reiteration of the policy direction outlined by the New Dawn Administration. Recalling Finance Minister Dr. Situmbeko Musokotwane’s K173. 0 billion budget theme: “Growth, Jobs and Taking Development Closer to the People,” Mr. Chanda urged Zambians to open their eyes as politicians continue to tell half-truths. Chanda implored the Zambian electorate and the UPND Administration led by President Hakainde Hichilema to realise that just 400 kilogrammes of emeralds can finance Zambia’s K173 billion 2022 national budget. “If Kagem Mining Limited sold 5625 carat of emerald at $28 million it then follows that l only need 400kg of good grade emerald to run the whole budget of the country. Is that not amazing that one person can fund the entire budget of seventeen million citizens. This is not a dream but reality that politicians and foreign investors have hidden from us. If Kagem in 2018 harvested seven tons what is four hundred kilograms. With seven tons it will be possible to run the country for six years. Zambians open your eyes,” Chanda advised. Kagem Mining Ltd in Zambia is 75% owned by Gemfields and 25% by the Industrial Development Corporation (IDC) of Zambia. Kagem produced 230,500 carats of premium emerald for the year ended 3st December 2021 and has generated total cumulative auction sales revenue of USD835.3 million since July 2009. Alluding to Deuteronomy 28:12, Chanda reiterated UPPZ’s opposition to borrowing arguing that Zambia is too prosperous to condone debt as a development strategy. “The Lord shall open unto thee his good treasure, the heaven to give the rain unto thy land in his season, and to bless all the work of thine hand: and thou shalt lend unto many nations, and thou shalt not borrow,” Chanda cited Deuteronomy 28:12. Protested Chanda: “Zambia is not poor and not a third world country”. NOTE: In 2007, Gemfields Group Limited (formerly Pallinghurst Resources Limited) (“GGL”) identified the coloured gemstone sector as an “overlooked” industry that offered a unique investment opportunity. Demand for coloured gemstones by the jewellery and fashion sectors was increasing, but supply was constrained and fragmented due to the lack of large, reliable producers able to consistently deliver sufficient quantities of gemstones. Pallinghurst saw an opportunity to unlock value by bringing capital, scale and professionalism to the industry, to which end it assembled a consortium of Pallinghurst Co-Investors, including the Group. Kagem, an emerald mine in the “Copperbelt” region of northern Zambia, currently producing nearly a quarter of the world’s emeralds, was the consortium’s first acquisition in the sector. Kagem had been producing emeralds for nearly 20 years but was performing badly due to a combination of poor management, theft, shareholder conflicts and a lack of capital. Through a series of transactions, the consortium acquired 75% of Kagem, with the balance held by the Government of the Republic of Zambia. In pursuing its vision for consolidating the sector, the consortium acquired majority control of AIM-listed Gemfields plc (“Gemfields”) by selling Kagem to Gemfields in a reverse takeover during 2008. MBUVA-CHIBOLELE The Mbuva-Chibolele licence is located on the Fwaya-Fwaya–Pirala Belt in the NRERA within the Kafubu area of the Copperbelt Province of Zambia, on the southern banks of the Kafubu River. It lies along the west-southwest strike from the nearby Fwaya-Fwaya emerald mining zone adjacent to the Kagem licence area. This pit was kept under care and maintenance from 2007 onwards so as to focus on operations at Kagem. However, following GGL’s acquisition of Gemfields, a decision was made to expand the Group’s emerald footprint and, accordingly, operations at Mbuva- Chibolele were resumed in late 2017. During October 2019, in accordance with the Licence Transfer Agreement between Gemfields Mining Limited and Kagem, the Chibolele, Kamakanga and Arinus licences held by Gemfields Mining Limited were transferred to Kagem. The transfer was approved by the Ministry of Mines and Mineral Development. In February 2020, the remaining eight licences included under the same Licence Transfer Agreement were approved by the Ministry of Mines and Mineral Developments and transferred

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