Gemfields (LON:GEM) said it has put on hold an auction of high-quality emerald and beryl scheduled for June 10-14 in Singapore pending clarification of proposed restrictions governing the export of the stones from Zambia.
In April, Yamfwa Mukanga, the country’s mining minister, distributed a press statement seemingly restraining auctions of locally produced emeralds outside Zambia. This included the output from Kagem, Gemfields’ mine, in which the government has a 25% stake.
The company said it “actively corresponding” with the ministry and added it hopes that “solutions supporting the continued growth of Kagem and the wider Zambian emerald sector will be reached as soon as possible”.
Chief executive Ian Harebottle added: "While there is presently no law in Zambia that prohibits the export of emeralds for auction purposes, we naturally wish to ensure that we work collaboratively with the government of the Republic of Zambia, who are our fellow-shareholders in the world-class Kagem emerald mine.
“Figures recently released by the Zambian Revenue Authority show that Kagem pays approximately 80% of the gemstone sector's aggregate royalties and that, last year alone, Kagem paid about 40% of the total cumulative gemstone royalties collected in the seven-and-a-half years since 2006.
“As such, there is a strong incentive for all parties to ensure that the remarkable growth Kagem has enjoyed in recent years - and the benefits that this growth has provided for the wider Zambian gemstone sector - are not impeded."