“London-listed Gemfields said on Wednesday that it would lobby the Zambian government
to suspend the newly reinstated 15% export duty on precious gemstones,
which would directly impact the emeralds mined by its 75%-owned Kagem Mining.”
– by Tasneem Bulbulia –
Senior Contributing Editor –
Mining Weekly –
“The export duty, effective January 1, is in addition to an existing 6% mineral royalty tax, bringing Kagem total effective tax on revenues to 21%. This is before factoring in the 30% corporation tax. In comparison, Brazil and Colombia, the world’s other top emerald exporters alongside Zambia, have significantly lower taxes.” – Mining Weekly

Following up on our report from last week, Gemfields continues to urge the Zambian government
to reconsider its 15% export tax on emerald rough.
– Gary Roskin –
Roskin Gem News Report –
To illustrate their point, Gemfields pointed out that Brazil’s aggregate tax on revenues was 2% (in the form of mineral royalty) and Colombia’s aggregate tax on revenues was 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.
As a comparison, Gemfields noted that in 2023, when no export duty was in place, Kagem paid an effective 31% of its revenues to the Zambian government in the form of mineral royalty, corporation tax and dividends.
Will this comparison sway Zambian officials? That’s not for us to speculate.
As of this report, there has been no indication that Zambia is even considering reversing its decision to impose the export tax. If the tax stands, this could lead to an increase in the cost of Zambian emerald rough, which would likely boost Colombian and Brazilian emerald sales, leaving Gemfields in a pickle.
If you recall from our last report, the Kagem mine is reportedly already under a six-month suspension, cutting costs to “protect the bottom line.” Couple that with Gemfields’ most recent ruby auction featuring lower-quality production, and with social unrest in Mozambique, the strain on both its ruby operations and emerald operations could be significant.

“The 15% export duty was initially introduced at the start of 2019,” notes Mining Weekly,
“but was suspended later that year after lobbying by the emerald sector.
Again, from Mining Weekly:
“The suspension remained in effect until January 1, 2025, when the duty was unexpectedly reinstated without notice or prior consultation, according to Gemfields.”
“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.”
Tap here to read the full report!
… in related news …

Zambia Sets its Sight on its Mining Industry for an Economic Recovery
“Zambia’s economic recovery now hinges on the performance of its mining sector, following severe droughts that hindered economic growth.”
– Chinedu Okafor –
21 January 2025 12:15 PM –
Business Insider Africa –
“According to Zambia’s finance minister, Situmbeko Musokotwane, the Southern African country is banking on its mining industry for an economic recovery, following a severe slowdown in development this year due to the worst drought in recorded history.”
“He made this known on Tuesday, during an event on the economic outlook, noting that new mines are launching soon, and older mines are set to receive investments to increase output.”
“If all goes according to plan, 2025 should be the start of this revival and it will be getting stronger and stronger each year going forward,” he said.
Tap here to read the rest of the story in the Business Insider magazine.
