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
(AIM) & BROKER
|
Panmure Liberum
Scott Mathieson / Kieron Hodgson / Amrit Mahbubani / John
More
T: +44(0)
20 3100 2222
|
|
GEMFIELDS HEAD OFFICE PR,
LONDON
|
Helena Choudhury / Albertina
Namburete
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
|
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YOUTUBE
KAGEM
MINING LINKEDIN
MONTEPUEZ
RUBY MINING LINKEDIN