Gemfields (GEMGE.L), a leading producer of colored gemstones, has urged the Zambian government to repeal a recently reinstated 15% export tax on emeralds, citing concerns about the tax’s impact on the industry.
Zambia, the world’s second-largest emerald producer after Colombia, reinstated the export duty on January 1, 2025, after suspending it in 2019.
In a statement, Gemfields announced its intent to engage with the government to either reinstate the suspension or remove the tax entirely, emphasizing the adverse effects on the sector’s sustainability and appeal for investment.
The Guernsey-based company operates the Kagem emerald mine in Zambia, one of the largest in the world. In addition to mining emeralds, Gemfields owns the Fabergé jewelry brand and a ruby mine in Mozambique.
In 2023, Kagem contributed 31% of its revenue to the Zambian government through mineral royalties, corporate taxes, and dividends. Gemfields holds a 75% stake in Kagem, while the remaining 25% is owned by the Zambian government.
Since 2009, the Kagem mine has generated cumulative emerald sales revenue of $1.1 billion, according to the company.
