KAGEM Mining Limited says it has raised over USD $27.2 million from the high grade emerald auction that was conducted in Singapore last week.  

Kagem is the world single largest producer of emerald and has this year raised over USD $72 million.

In a statement issued to the media, the emerald auction was conducted and monitored by officials from the ministry of finance, mines and mineral development.

Kagem is co-owned by the Zambian government through the Industrial Development Corporation (IDC) and London-listed Gemfields which owns 25% and 75% shares respectively.

Despite this milestone achievement, the company said high taxes are negatively affecting their operations.

“Despite robust mining  and sales performance, the efforts are unlikely to be rewarded given that the auction revenues of US$79 million are poised  to suffer both  15 percent export duty  and six percent mineral royalty tax , totalling US$17 Million,” Gemfields Managing Director of Product and Sales Adrian Banks said.

He said the six percent mineral royalty tax is further st the corporation tax rate of 305 according to the company profit.

He said the effective tax rate is crippling for any company, in any sector, in any country.

Banks further said the Zambia’s 15% export duty has given Brazil and Colombia the competitive edge by making them more attractive gemstone investment destinations and ore competitive emerald exporters.

Banks added that Kagem has made Zambian emeralds competitive on the international by shouldering the export duty rather than passing it on to the consumers.

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