Zambia’s emeralds earned Gemfields Mining $22.4 million in a Singaporean held gem sale held between the 14-17 May. This translated to an average price of $71.85 per carat in an auction with 35 lots on offer of which 28 accounting for 80% were sold. Zambian emeralds have earned Gemfields $589 million since 2009 which has seen 32 successful gem sales.
The Singaporean auction attracted 45 entities placing bids and generating total revenues of USD 22.4 million with an overall average value of USD 71.85 per carat, an all-time record for any Gemfields emerald auction. The auction saw 72% of the offered carats being sold (or 80% of the number of lots offered).
Commenting on the auction results Adrian Banks, Gemfields’ Managing Director of Product & Sales said:
‘We congratulate Chatree Gems of Thailand – one of our firmly established ruby auction customers – on their participation in their first Gemfields emerald auction. They won three lots of fine quality emeralds, including the top lot comprising two exceptional gems weighing a total of 62 carats, and which set a new record price per carat for Zambian rough emeralds at a Gemfields auction. The two gemstones have been named ‘Green’ and ‘Ice’ in homage to the 1981 movie starring Omar Sharif and Ryan O’Neal.
The biggest issue Kagem presently faces is the 15% Zambian export duty imposed on emeralds since 1 January 2019. When combined with the pre-existing 6% mineral royalty tax, Zambian emerald exporters must now pay an effective 21% turnover tax on their revenues.
By contrast, the world’s second and third largest emerald exporters, Colombia and Brazil, levy 2.5% and 2.0% respectively, bringing about a watershed shift in tactical advantage. While the 15% export duty shuts the door on foreign investors and new entrants interested in the Zambian emerald sector, the financial impact is being acutely felt by incumbent producers like Kagem. We continue to liaise with the key government departments in seeking resolution and remain hopeful that a solution will be found.’