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Zambia re-introduces 15% export duty on emeralds
Gemfields Group Limited
Incorporated in Guernsey. Guernsey registration number: 47656
South African external company registration number: 2009/012636/10
Share code on JSE:GML / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Group" or the "Company")
Zambia re-introduces 15% export duty on emeralds
LONDON, 8 JANUARY 2025
Gemfields has become aware that a new statutory instrument in Zambia dated 30 December 2024
and which came into effect on 1 January 2025 (S.I. No. 88 of 2024, the Customs and Excise
(Precious Stones) (Export Duty) (Suspension) (Revocation) Order, 2024) has revoked the 2019
suspension of a 15% export duty on precious gemstones. This directly impacts the Zambian
emeralds mined by Kagem Mining Limited ("Kagem") which is 75% owned by Gemfields and
25% owned by the Zambian Government's Industrial Development Corporation.
This 15% export duty now applies on top of the existing 6% mineral royalty tax and meaning that
Kagem faces an effective tax on revenues of 21% (in addition to corporation tax of 30%). Brazil,
Colombia and Zambia are the world's three largest emerald exporters. Brazil's aggregate tax on
revenues is 2% (in the form of mineral royalty) and Colombia's aggregate tax on revenues is 2.5%
(being a 1.5% mineral royalty and a 1% national emerald fund contribution) in addition to
corporation taxes of 34% and 33% respectively.
In 2023, when no export duty was in place, Kagem paid an effective 31% of its revenues to the
Government of the Republic of Zambia in the form of mineral royalty, corporation tax and
dividends.
The 15% export duty was originally introduced at the start of 2019 by the previous Zambian
government and after considerable effort by the Zambian emerald sector, the export duty was
suspended at the end of 2019 and ceased to apply from 1 January 2020.
Gemfields notes that there was no notice or prior consultation regarding the re-introduction of the
15% export duty. Gemfields understands that several additional measures have also been introduced in
other areas of the Zambian economy to enhance Zambian Government revenues in 2025.
The Company will engage with the Zambian Government to seek the re-introduction of the
suspension of this export duty or to remove it from the legislation given the impact on sector
sustainability and investment attractiveness.
The Company will keep the market informed of further developments.
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, please contact us on:
ir@gemfields.com
For any press enquiries, please contact Helena and Albertina:
helena.choudhury@gemfields.com / albertina.namburete@gemfields.com
This announcement contains inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) no. 596/2014 which forms part of domestic UK law pursuant to the European
Union (withdrawal) act 2018 ("MAR").
ENQUIRIES
GEMFIELDS Sean Gilbertson / David Lovett / Ian Hughes
ir@gemfields.com
T: +44(0) 20 7518 3400
SPONSOR (JSE) Investec Bank Limited
NOMINATED ADVISER Panmure Liberum
(AIM) & BROKER Scott Mathieson / Kieron Hodgson / Amrit Mahbubani / John More
T: +44(0) 20 3100 2222
GEMFIELDS HEAD OFFICE Helena Choudhury / Albertina Namburete
PR, LONDON helena.choudhury@gemfields.com / albertina.namburete@gemfields.com
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields is a world-leading responsible miner and marketer of coloured gemstones. Gemfields is
the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the
world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one
of the most significant recently discovered ruby deposits in the world). In addition, Gemfields also
holds controlling interests in various other gemstone mining and prospecting licences in Zambia,
Mozambique, Ethiopia and Madagascar.
Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage
- enables Gemfields to optimise positioning, perception and consumer awareness of coloured
gemstones through Fabergé designs, advancing the wider group's "mine and market" vision.
Gemfields has developed a proprietary grading system and a pioneering auction platform to
provide a consistent supply of coloured gemstones to downstream markets, a key component of
Gemfields' business model that has played an important role in the growth of the global coloured
gemstone sector.
GEMFIELDS
GEMFIELDS.COM | INVESTORS |FOUNDATION
INSTAGRAM | FACEBOOK | X | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | X | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
Date: 08-01-2025 09:00:00
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