LUSAKA, ZAMBIA – Kagem Mining Limited has delivered a USD 5 million dividend to the Zambian government’s Industrial Development Corporation (IDC) Limited, which owns 25% of the emerald mining company in Lufwanyama.
Kagem delivers the dividend for the second consecutive year, which are the first dividends delivered since 2016. This dividend is in addition to the USD 11.5 million mineral royalty tax paid on the sale of emeralds at auction during 2022 and the USD 13.3 million corporation tax payable for the year ended 31 December 2022.
“Kagem’s Zambian emeralds continue to attract a worldwide market, and it is this value that has enabled Kagem to pay this dividend for 2022. Our strategy of being a world-leading responsible miner and marketer of coloured gemstones is working and is generating considerable revenue and benefits for our host governments and the communities we operate in,” said Kagem Board Chair, Dr Sixtus C Mulenga.
IDC Investments Committee Chairperson and Director on the Board, Beatrice Nkanza commended Kagem on the development saying: “We are extremely pleased that Kagem has declared dividend to its shareholders on the back of the strong financial performance. Of this dividend, the Zambian government through the IDC has received USD 5 million, commensurate to our shareholding. It is our expectation that Kagem continues on this growth trajectory and continue to contribute to the growth of the Zambian economy.”
The Minister of Mines and Mineral Development, Honourable Paul Kabuswe who graced the occasion reiterated government’s desire to realize a thriving and long-lasting mining industry that through mutual and beneficial stakeholder partnerships would deliver value on investments: “Government is not in this alone. Our partner is the private sector, and this dividend being presented by Kagem demonstrates the company’s dedication to meeting us half way by fulfilling its obligations and contributing to the sector’s economy.”
Kagem Mining has also spent USD 3 million to December 2022 on its social development programme across health, education and livelihoods. This includes the upgrading of a clinic to hospital status, local farming skills training, funding of university undergraduate degree scholarships in Geology and Mining Engineering, the construction of Chapula Secondary School, and more recently the expansion of Masasa primary school and upgrading of Kapila primary school. Kagem also has plans in place to create a vocational skills training centre in the near future.
Kagem conducted four emerald auctions in 2022, with some auctions setting new records including the highest revenue received, and the highest average price per carat achieved at any Kagem auction.
The November auction saw the sale of Kagem’s outstanding 37kg Kafubu Cluster, setting a new record as the most expensive single emerald item ever sold by Gemfields. Kagem was also able to supplement its 2022 revenues via its direct sales programme for commercial quality gemstones in India.
Kagem’s 2022 auction revenues set a new annual record of USD 149.4 million, beating the prior record – set in 2021 – of USD 92.3 million, making 2022 the best calendar year performance since Gemfields acquired the mine more than a decade ago in a model partnership with the government.
Kagem attributed the achievement to the hardworking team and Kagem’s 25% shareholder, the Government of the Republic of Zambia.
Dr Mulenga further noted further noted that Gemfields and Kagem’s strategy of marketing Zambian emeralds on the international stage over the years, as well as its ability to adapt to ever-changing market circumstances, such as the introduction of the “online bidding” auction format, has provided greater flexibility in conducting its business.
“2022 has been a remarkable year for Gemfields Group Limited, with a dramatic recovery as we returned to normality after the Covid-19 pandemic. I would like to take the opportunity to thank Gemfields Group and our stakeholders for the resilience shown across the past few years.” said Gemfields Chief Executive Officer, Sean Gilbertson.
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Kagem responsible sourcing highlights
Kagem is committed to ensuring that the community continues to benefit positively from its operations through various sustainability programmes focused on alleviating poverty and aligned with government policies, the UN Sustainable Development Goals (SDGs) and Vision 2030
The mine has spent more than USD 2.8 million on community projects, including:
Rehabilitation of the 18.7km road connecting Chief Nkana and Chief Lumpuma’s chiefdoms from Kandole to Kafwaya village in Lufwanyama district
Construction of the Nkana Health Centre
Construction and equipping of a new Chapula Secondary School
Construction of new buildings at Chapula Primary School
Building of teachers’ accommodation at Kapila Community School
Support for the Blessing, Kapila Green Farms,Twende and Twasanta projects
Improvements to Chief Nkana and Chief Lumpuma’s palaces
Kagem has renewed its partnership with both the Copperbelt University (CBU) and the University of Zambia (UNZA), committing to new scholarship programmes totalling USD 345,000. This follows the previous commitment of USD 345,000 to sponsor students from the geological and mining engineering departments at the School of Mines at UNZA and CBU over a period of eight years.
Pledge of USD 220,000 to support Lumpuma Multi-Purpose Cooperative Society farming initiative
Kagem currently provides 1,150 direct jobs, with 94% of the workforce being local.
About Kagem Mining
Kagem Mining Ltd, based in Lufwanyama, is believed to be the world’s single largest producing emerald mine. Kagem is 75% owned by Gemfields, in a model partnership with the Zambian government.
Kagem aims to emulate the values of Gemfields and operate in a way that contributes positively to the national economy, while taking a leading role in modernising the coloured gemstone sector and building sustainable livelihoods for the communities around the mine. Kagem believes that coloured gemstones should be mined and marketed by championing three key values – transparency, legitimacy and integrity.
Gemfields is a world-leading responsible miner and marketer of coloured gemstones. In addition to Kagem, Gemfields is the operator and 75% owner of Montepuez Ruby Mining in Mozambique (at one of the most significant recently discovered ruby deposits in the world), as well as bulk sampling licences in Ethiopia, amongst others.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of coloured gemstones to the global jewellery market.
Fabergé – an iconic name with an exceptional heritage – is a member of the Gemfields Group. The beauty of Fabergé’s designs and craftsmanship, helps to raise consumer awareness of responsibly sourced coloured gemstones.
As well as supplying a significant share of the world’s rough rubies and emeralds, Gemfields initiates activations to build desire for coloured gemstones: for example, collaborations with international jewellery brands and other creative partners. Often surprising, unexpected and unique, these collaborations are chosen to promote consumer awareness and increase the appeal of coloured gemstones, raising their profile, and, in turn, providing greater benefit to their place of origin in Africa.