BUSINESS

KAGEM CONFIRMS THIRD LUSAKA EMERALD AUCTION

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Gemfields Emerald

Gemfields Emerald

Kagem Mining Ltd (Kagem) has announced that it will hold an auction of commercial and lower quality rough emeralds in Lusaka from November 11 to 15, 2013. This auction is the third rough emerald auction to be held in the Zambian capital by the company this year.

Kagem, which is 75 percent owned by London-listed Gemfields plc and 25 percent by the Zambian government, expects to attract leading buyers of precious gemstones from around the world for a week-long session of appraisal, followed by the submission of sealed bids.

Gemfields Chief Executive Officer, Ian Harebottle, confirmed the group’s commitment to holding the auction in Lusaka, and reiterated the company’s desire that Zambia become an important hub on an international circuit of auctions. He stressed the importance of taking all necessary steps to support the continued increase in global demand for Zambia’s long undervalued gems and the associated increase in achievable prices, all the while ensuring that the needs of Zambia as a nation are also met.

He added that Gemfields continued to be pleased with the ongoing level of communication and interaction between the company and the Zambian government, with both parties committed to the objective of establishing Kagem as a flagship company within the global coloured gemstone sector.

Gemfields raised US$15.2 million from a sale of lower quality gemstones in Lusaka in April this year, and a further US$31.5 million from an auction of higher quality emeralds in the city in July.

As with the two prior auctions, the forthcoming auction will be held under the supervision of nominated Zambian government representatives.

All the emeralds placed on offer at the auctions were mined at Kagem’s mine in Lufwanyama, the single largest emerald mine in the world.

Gemfields and Kagem are at the forefront of developing the international market for Zambian emeralds by investing in proprietary global sales, distribution and marketing platforms in order to develop a competitive and reliable source of ethically produced gemstones that buyers have full confidence in. Transparency and accountability are key to winning that trust, enhancing the integrity of the industry.

This long-term strategy to place Zambian gemstones on the international map is aimed at optimising sales value by assuring buyers of the quality and consistency of supply, and thus maximising profitability and hence tax revenue, employment and economic and social benefit to Zambia.

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