Govt to formalise trading system for emeralds, gemstones
By Chiwoyu Sinyangwe
Thu 14 Nov. 2013, 14:00 CAT
THE government plans to establish a formalised trading system for emeralds and gemstones as it gears ahead for value addition, says mines minister Christopher Yaluma.
Yaluma said Gemfields which is a world renowned player in the gemstone sector would lead the government's plans to locally add value to Zambia's gemstones and create domestic jobs.
Kagem, majority-owned by Gemfields, on Monday conducted the third auction in Lusaka this year at which 1.123 tonnes of commercial and low grade rough emeralds were put for sale to traders from Hong Kong, India, Germany and the US, among other countries.
Yaluma said the government was looking at migrating from the current export of rough emeralds to polished ones as a way of value-addition and to create jobs locally.
"We don't want the beneficiation to happen elsewhere," Yaluma said when he officially opened the one-week auction. "We want to support Kagem on their plans to become the best emeralds company in the world and we are driving to support them to that effect that they succeed. This also creates employment for the people of Zambia the people going to the emerald sub-sector; there will be polishing, there will be cutting; whatever is associated with adding value to our emeralds."
Yaluma said the government wanted to leverage Kagem's strong connection with India, one of the global top producers of emerald jewelries.
"We will try to assimilate what is done in India and Kagem will provide that platform," said Yaluma.
"We want the trading system to come here and people can walk in and purchase the emeralds and any other products of this can done. We want to put up a well-structured formalised trading system and the permanent secretary already advanced and ZCCM- IH and Kagem to put it up.
Gemstone and Kagem have been in this business for a long time and so it's just a matter of picking up ideas and come and customise for Zambia but with the influence and input from Zambian stakeholders. We need this sub-sector to grow just like copper and maximise the benefits and proceeds from this sub-sector."
Currently, copper mining contributes about 5.9 per cent of the gross domestic product while data on revenues and economic contribution of the gemstones sector remains scanty and haphazard.
And Kagem chairman William Nyirenda said the quality of Kagem's emeralds is competitive internationally.
"The return on your investment in our emeralds is competitive internationally. We take pride in the value addition chain of our emeralds so that the product we offer to you is a product that meets your imaginations and expectations," said Nyirenda.
Labels: CHRISTOPHER YALUMA, EMERALDS
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Sata happy with local emerald auction
By Chiwoyu Sinyangwe
Wed 31 July 2013, 14:01 CAT
PRESIDENT Michael Sata says Zambia's ability to hold successful auctioning of emeralds has been understated through various manipulations.
Zambia last month held its second auction of high grade emeralds at which US$31.5 million was realised, doubling the feat achieved during the inaugural auction last April.
In an unprecedented move, the Treasury earned US$1.89 million in mineral royalty from the auctioning of emeralds done this month.
Gemfields Plc, which owns 75 per cent of Kagem Mining Limited, Zambia's biggest emerald producer, held its local auctioning of high grade emeralds, attracting 37 foreign companies.
Commenting on the development, President Sata hailed the mines ministry for implementing his directive on gemstone auctions without delay.
President Sata said following the outcome of the successful auctions, there was no doubt about the country's ability to hold these auctions locally and maximise revenue, which might have been understated through various manipulations.
"On the insistence of government, Kagem Mines Plc held a low grade rough emeralds auction from 15 - 19 April, 2013 which realised US$15.2 million which was the highest value ever realised," President Sata said in a statement by special assistant for press and public relations George Chellah.
"Similarly, from 15 - 19 July, another auction of high grade emeralds was held at which US$31.5 million was realised. This is the second highest auction revenue achieved to date and the best in terms of value per carat sold."
The average per carat price of US$54 has set a new record. Furthermore, all the 583,448 carats placed on offer were sold.
President Sata said it is obvious that selling and auctioning of gemstones locally would create employment and enhance value addition through cutting.
"Additional spillover effects to other sectors of the economy will also be enhanced as international buyers who come and stay in the hotels will end up visiting other tourist attractions as well as having an interest in investment opportunities in various sectors of the economy," he said.
President Sata reiterated government's commitment to diversifying the economy away from copper and promoting value addition industries in the mining sector in line with the PF Manifesto.
Labels: EMERALDS, MICHAEL SATA, MINING
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High-quality emerald auction will reinforce Zambia's reputation internationally - Gemfields
By Gift Chanda
Fri 19 July 2013, 14:00 CAT
GEMFIELDS Plc says its high-quality emerald auction being held in Lusaka this week will reinforce Zambia's reputation in the international market as a trusted source of world-class gemstones.
The company, which operates the Kagem emerald mine in Lufwanyama, in which the Zambian government is a 25 per cent shareholder, is hosting some 40 leading international buyers of the precious stones at the sale, which will culminate in silent bids being submitted today.
The bids will be opened and collated under the supervision of Zambian government representatives from the Ministry of Mines, Energy and Water Resources.
The five-day auction attracted buyers from across the globe, as well as three Zambian bidders, who spent the past four days appraising 18 lots of rough, high quality emeralds in the second sale held by the company in Lusaka.
All the emeralds on offer at the auction were mined at Kagem's mine in Lufwanyama, the single largest producing emerald mine in the world.
Gemfields and Kagem chief executive officer Ian Harebottle said there was need to continue building on the gemstones industry success "even if this auction is a massive success."
"We need to keep the momentum going and get a higher price. Let us look and see what is really best for Zambia today, tomorrow and the years to come," he said yesterday.
Early this year, the government announced that auctioning of locally-produced emeralds would be done within Zambia in order to increase revenue collection from the green stones.
The move by the government saw Gemfields change venue to Lusaka for an auction that was initially planned for Singapore.
Gemfields, which controls most of the country's emerald production, has since been having talks with the government to see if auctions could still be held outside.
Mines minster Christopher Yaluma on Monday said the government will decide this week, based on the success of Gemfields' auction, if it will allow stones mined in the country to be auctioned abroad.
Gemfields' low-grade emerald auction in April saw the company raise a record US$15.2 million, but at the same time the firm reported a seven per cent decline in average per-carat prices.
Labels: EMERALDS, KAGEM
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Zambia’s emerald potential exhibited in US
January 23, 2013
By JUDITH NAMUTOWE -
The potential of Zambian emeralds has been exhibited in the United States by GEMIFIEDS Plc, where a stunning 1,354 carats of the country’s emerald beads were showcased by a local television icon Lara Spencer.
The 11th Gem award hosted by Gemifields Plc, the company that operates Kagem emerald mine in Lufwanyama District on the Copperbelt, was held at Cipriani 42nd Street in New York City last week.
This is according to a statement made available in Lusaka yesterday.
Gemfields chief executive officer Ian Harebottle, alongside presenter Brooke Shields and ABC’s Good Morning America host and event MC Lara Spencer, who wowed the audience in Gemfields’ multi-strand necklace with 1,354 carats of Zambian emerald beads attended the event.
The event, honoured industry icons, including Stellene Volandes, Style director of Town and Country, who received the organisation’s GEM award for Journalistic excellence and Matthew Runci, former president and chief executive officer of Jewellers of America, who received the GEM award for Lifetime Achievement.
Mr Harebottle said the event demonstrated Gemfields’ commitment to promoting Zambian emeralds to the international jewellery industry at the highest levels.
“It also shows that Zambia’s gemstones are being internationally recognised as the finest in the world.” Mr Harebottle said.
Gemfields Plc is a leading gemstone miner listed on the Alternative Investment Market of the London Stock Exchange.
The company owns 75 per cent of the Kagem mine in Lufwanyama, in partnership with the Zambian Government.
Besides the Kagem emerald mine, Gemfields has a 50 per cent interest in the Kariba Amethyst mine in Zambia.
The company also owns controlling stakes in highly prospective ruby deposits in Mozambique and various licences in Madagascar including ruby, emerald and sapphires deposits.
The GEM awards recognises the outstanding achievements of individuals and companies whose work amplifies the Jewellery information centre’s mission.
Labels: EMERALDS
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Beware of crooks, Sata cautions mines
By Masuzyo Chakwe
Mon 12 Nov. 2012, 14:00 CAT
PRESIDENT Michael Sata has cautioned mining firms on the Copperbelt Province to beware of unscrupulous persons that are obtaining money whilst masquerading as his representatives.
This is according to a statement issued by special assistant to the President for press and public relations, George Chellah, numerous reports and complaints reaching the Presidency concerning fraudsters that were obtaining money or some other benefits by calculated deception from emerald mines amidst claims of being sent by the ruling Patriotic Front (PF) and the head of state in particular.
State House further warned the general public that those dealing with such individuals must realise that they were engaging them in their personal capacity and "State House would not take responsibility of any such transactions".
"Furthermore, our word of caution to those behind this disgraceful, crooked and irresponsible behaviour is for them to stop at once before they meet the penalty of their deeds. We also urge the police and other law enforcement agencies to take keen interest in the matter and ensure that the culprits are brought to book," read the statement in part.
Labels: EMERALDS, MICHAEL SATA, MINING
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Kagem miner recounts abuse
By Darious Kapembwa in Kitwe
Wed 25 Jan. 2012, 13:30 CAT
A KAGEM emerald mineworker has complained of how a security manager squeezed his private parts and inserted a finger in his anal canal on suspicion he had hidden an emerald.
Willie Manda in a report to Kagem management and the Mineworkers' Union of Zambia stated that a Mr Dramandra stripped him and conducted the search on his body in a disrespectful manner.
Dramandra, of Asian origin, allegedly went further to insert his finger in Manda's anal canal in an open place.
According to the report, there was no respect in the way security searches were done at the company.
"First he stripped my zip open and he touched my boxer shorts inside and then my pant. He squeezed my genitals and inserted his finger in my anal canal," Manda explained in the report. "I cried out to my supervisor who was nearby while another security officer, Mr Mwanza watched helplessly."
Other workers who spoke on condition of anonymity warned that there would be disharmony in the company if Dramandra was not disciplined.
MUZ officials at the company said their superiors from headquarters were trying to meet management to resolve the matter.
Efforts to get Kagem management for comment on the matter proved futile the responsible officers as werte reportedly at the mine site in Lufwanyama where there is no telephone network.
Labels: EMERALDS, KAGEM, LABOUR, MINING
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C0MMENT - How about copper and cobalt mines too?
Kafimbwa recommends ZRA presence at emerald mine sites
By Misheck Wangwe in Kitwe
Mon 26 Dec. 2011, 13:59 CAT
THE Emerald Production Watch of Zambia says the country is not collecting enough revenue from precious stones due to lack of transparency in the extraction of minerals.
In an interview, organisation president Musa Kafimbwa said the PF government must come up with measures that would enhance transparency in the extraction of emeralds and semi-precious stones.
Kafimbwa said it was sad that the country had not maximised its benefits from the country's precious minerals, which had remained one of the most lucrative at the international market.
He said the value of Zambian emeralds at the international market, if well utilised, could create the much needed wealth for the country.
Kafimbwa said the Zambia Revenue Authority (ZRA) must establish offices at the emerald mine sites for them to get actual production data as there were anomalies in the monitoring system of emerald mining.
He said revenue collection should be done at the production site as it was the standard practice in every country endowed with precious minerals.
"Our minerals are just taken like that. We are almost getting nothing from these mines. We need to monitor production in these mines because even the Ministry of Mines has no data on how many emeralds are produced per day in this country and the investors in emerald mining fall under this ministry.
As a watch group, we are strongly convinced that there is no monitoring from the point of production to where there is an auction," Kafimbwa said.
He said ZRA should put up a stringent revenue collection system in emerald mining.
Kafimbwa said it was unacceptable that districts like Lufwanyma had remained among the poorest despite producing richest minerals in the world.
"If you go to Lufwanyama, we have two chiefs there: chief Lumpuma and chief Nkana. They are all poor despite their chiefdoms being endowed with precious minerals like emeralds and every investor is looking for these minerals. We want our people to benefit from these minerals," said Kafimbwa.
Labels: EMERALDS, ZRA
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Sata wants action against plunder
By Chibaula Silwamba and Speedwel Mupuchi
Fri 30 Dec. 2011, 14:00 CAT
PRESIDENT Michael Sata says Director of Public Prosecutions (DPP) Mutembo Nchito, Attorney General Mumba Malila and Solicitor General Musa Mwenye are a "deadly and formidable team" to fight corruption and dispense justice.
And President Sata urged new Governor of the Bank of Zambia Dr Michael Gondwe, to work at strengthening the Kwacha.
Speaking at State House in Lusaka yesterday when he swore in former Law Association of Zambia president Mwenye as new Solicitor General, President Sata said there was a lot of money buried by former leaders in the previous regime.
"Mr Mwenye, congratulations. You are one of very few people who would abandon a position of president of the Law Association of Zambia, to come and join the public service. I would like you to hunt for your friend, Mutembo Nchito so that he can take oath and you start functioning. This is the first time we have a deadly and formidable team, Attorney General (Malila), Solicitor General (Mwenye) and DPP (Mutembo)," President Sata said.
"So, please look for Mutembo Nchito. We have to come to work because if they are burying money underground and there is plenty of money and vehicles…the plunder in the last three years was worse, it deprived a lot of people of what they are supposed to do. So I want you to move and assist Zambians."
He urged the trio to ensure that they revamp the legal aid system.
President Sata, who spent over one month in jail on a non-bailable charge of theft of motor vehicle that was later dropped during the late Levy Mwanawasa's administration, said many prisoners had no legal representation.
"I was in prison for 40 days and the majority of people in prison are poor people. Poor people have no representation. Let us revamp the legal aid system and let us also create a new office of district attorney so that people can be properly prosecuted," President Sata said.
"The Legal Aid, look at the conditions of service and come to us. The 40 days I stayed in prison, poor people don't even know what legal representation is. I stayed 40 days because I had a very effective legal representation; I even managed to get bail on a matter which they said there is no bail. My lawyers went around and got a constitutional bail."
President Sata also swore Dr Mwaba Patricia Kasese-Bota to be Zambia's permanent representative to the United Nations in New York, former UPND vice-president Francis Simenda (ambassador to Ethiopia and African Union, Wendy Sinkala (High Commissioner to Namibia), Lt Col Bizwayo Nkunika (who has been transferred from South Africa to the United Kingdom in the same capacity as High Commissioner), Muyeba Shichapwa Chikonde (High Commissioner to South Africa), Mwelwa Chibesakunda (ambassador to Japan), former deputy secretary to the Cabinet Robert Mataka (High Commissioner to Botswana) and Frederick Hapunda (ambassador to Russia).
President Sata urged the eight diplomats to market Zambia and bring business to the country.
"It has taken so long for us to get agreements with the countries where you are going to because some of your relatives whom we appointed in foreign service like Nevers Mumba recently-recalled High Commissioner to Canada, they left stinking names at those missions and you find that those countries are taking so long to try and clear you, making the Ministry of Foreign Affairs look like they are not efficient," President Sata said.
"Go there and see how many Zambians are in that place you will be operating from. Go and build the name of Zambia. Go and bring business to Zambia, don't go and bring business in your pockets."
In apparent reference to Mumba, President Sata wondered how a former envoy could be living in an expensive and luxurious hotel on return.
"Can you imagine a former high commissioner staying in Intercontinental Hotel from his own pocket?" President Sata said.
"Some of you have been there before. We need to work extremely hard; we need to bring back the glory which we have lost. Zambia provided leadership in the past but we are not doing it anymore because of selfishness."
President Sata said he was not looking at one's tribes when appointing people to decision-making positions like diplomats but an individual's contribution to the nation.
President Sata told Dr Gondwe, after he was sworn in, to work with finance minister Alexander Chikwanda and others to ensure that Zambians benefit from all exports.
"Why should we export our goods and not knowing how much they are worth? People get our emeralds in pockets and go and fetch millions of millions of dollars in India. Work with the minister of finance and bring back the statutory instrument that any cent which is exported from Zambia, the Zambian people must benefit from what is coming from their own soil," President Sata said.
"God was not silly by giving us all the precious stones. If God was silly He could have given the Japanese precious stones but He gave to us. So, we must benefit. We know you are a very hard working person. Let us work as a team and bring back the economy. At the moment, aren't we ashamed as Zambians that our currency is (one of) the weakest in the world? Go there and strengthen it."
At the same ceremony, President Sata swore in permanent secretaries Charles Kapembwa Sipanje (Muchinga Province) and Hlobotha Nkunika (Eastern Province).
"You are not going as kings but as servants of the people. Go and serve the people and you must be loyal to your ministers. I have seen in certain provinces where permanent secretaries are more superior than the ministers," President Sata said.
The President announced that he had two more districts - Vubwi, previously part of Chadiza District in Eastern Province and Lunga, previously part of Samfya district in Luapula Province.
He said the creation of the new districts was meant to ease the administration of the regions.
This brings the number of districts to about 75.
"When people have no representation, they even come with all sorts of things like self-determination or autonomy and when you ask them, ‘how are you going to manage your autonomy?' they start laughing," said President Sata.
And Kasese-Bota, a medical doctor and gender activist, commended President Sata for appointing more women into key decision-making positions.
"I feel very excited that I am a second woman after Gwendoline Konie to be Zambia's permanent representative to the UN," said Dr Kasese-Bota. "I am happy that the President is very gender sensitive. This is a plus in terms of gender equity."
Foreign affairs minister Chishimba Kambwili said the appointment of people from various backgrounds and tribes into diplomatic posts had vindicated the PF and President Sata that it would not appoint cadres into such positions.
"We told you that we are going to appoint people who have requisite qualifications into the diplomatic service. I want to challenge all of you in the media to point at any of those people appointed as ambassador or high commissioner, who is a political cadre," Kambwili said.
"Some people have accused us that we are only appointing cadres and people of Bemba inclination but you can see from the balancing of the high commissioners and ambassadors that we mean well and we shall continue to do that and we want to create a career diplomacy that will bring economic development to Zambia and not to appoint cadres without qualifications."
Labels: CORRUPTION, EMERALDS, MICHAEL SATA, MUMBA MALILA, MUSA MWENYE, MUTEMBO NCHITO
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COMMENT - dr. Situmbeko: "
the government was aiming at inviting as many investors as possible, who would in turn lead many Zambians into the Pay as You Earn tax group." - neoliberal idiocy. The government will share mining revenues with local governments 'when we are ready'? This individual is a joke.
Musokotwane silent on Katumbi emeralds
By Mutale Kapekele and Bright Mukwasa
Fri 11 Mar. 2011, 18:40 CAT
FINANCE minister Dr Situmbeko Musokotwane on Wednesday
failed to tell Parliament how much tax the government generated from confiscated emeralds that the government returned to Katanga governor Moses Katumbi.During the question and answer session, Dr Musokotwane was asked how much the government generated from Katumbi’s emeralds but he
refused to answer, saying he would
prefer a written scheduled question.
When he was asked when the government would start sharing mineral royalties with local authorities in which mines operate, Dr Musokotwane responded “when we are ready.”
And Dr Musokotwane told Parliament that 65.5 per cent of Zambia’s rising external debt was contracted from multilateral organisations like the World Bank, Africa Development Banking group and the IMF while the rest was owed to the Paris Club members, among other.
Zambia has recorded an average of US$200 million yearly rise in external debt. He maintained that as of December 2010, Zambia’s external debt stood at US$1.28 billion.
Dr Musokotwane said the country still had room for careful borrowing considering the fact that copper exports had recorded a sharp rise from US$900 million 10 years ago to a projection of US $7 billion this year.
Copper exports contributed less than three per cent to the country’s revenue despite netting US$7.2 billion in 2010.
Responding to advice from Ithezi-thezi member of parliament Godfrey Beene who said the government should limit its borrowing to US$100 million per annum, Dr Musokotwane acknowledged that the caution was valid but added that borrowing was a normal part of life and that even rich countries contracted debt.
Dr Musokotwane also defended the government’s failure to collect tax saying the ability to generate income from taxation depended on the levels of investments.
He said the government was aiming at inviting as many investors as possible, who would in turn lead many Zambians into the Pay as You Earn tax group.
Labels: CORRUPTION, EMERALDS, Moses Katumbi, NEOLIBERALISM, SITUMBEKO MUSOKOTWANE
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Lufwanyama UPND urges quick rehabilitation of Kagem rd mine
By Mwila Chansa in Kitwe
Tue 13 Apr. 2010, 03:50 CAT
LUFWANYAMA district United Party for National Development (UPND) chairman Justin Mwalikwa has urged the government to quickly facilitate the rehabilitation of the road from Kalulushi to Kagem mine. In an interview, Mwalikwa described the state of the road in question as deplorable.
He said it was surprising that a road leading to an emerald-rich area could be neglected to an extent where residents had now abandoned it and opted to use the road passing through the graveyard.
“That road is really deplorable and it has been completely impassable for the past one month. Neither the government nor the mine owners care to repair it,” Mwalikwa said.
“It is surprising that that road can be left like that because the product that comes out of Kagem is a very expensive precious stone. Even the local residents and the chief are now failing to use it (the road), they are forced to pass through Kalulushi cemetery because the road there is much better.”
He said Kagem was a producer of one of the world’s best emeralds and neglecting a road leading there signified bad leadership by those in the government.
Mwalikwa appealed to the government to quickly source funds to repair the road.
Labels: EMERALDS, JUSTIN MWALIKA, KAGEM, ROADS, UPND
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Kagem guard strips miner in search of emeralds
Written by Mutuna Chanda in Kitwe
Monday, October 19, 2009 7:01:01 AM
A KAGEM Mine security guard of Asian origin stripped naked a Zambian miner in search of suspected stolen emeralds. Sources told The Post that on October 8, the guard identified as Guyung Yogendra, stripped Davison Mwila whom he suspected of concealing emeralds in his underwear.
The sources said Mwila, who was on duty was sent by his supervisor to get water and that on his way out, Yogendra searched him as per procedure. The sources said on searching Mwila, Yogendra found that he wore underwear that had a zip and he stripped him on suspicion that he might have concealed an emerald.
They said when Kagem mine workers heard that Mwila had been stripped naked, they protested against the action.
The sources indicated that when Kagem Mineworkers Union of Zambia (MUZ) officials got wind of the incident, they reported the matter to the police.
Other sources complained that Kagem security officers of Asian origin sometimes use dehumanising methods to search mine workers whom they suspected of stealing emeralds.
The sources said there had been instances where the officers would strip workers and even go to the extent of inserting fingers in the anus of an employee suspected of stealing emeralds.
They further said a senior state security officer and Lufwanyama district commissioner Evans Pwele held meetings with Kagem management over Mwila's incident.
The sources explained that when the union reported the incident to police, state security officials told Yogendra to stay away from work.
The sources feared that Yogendra was being shielded and that Kagem officials were attempting to 'bribe' government officials to facilitate his continued stay in the country.
When contacted for comment, Kagem senior manager for corporate affairs Jonas Mwansa confirmed the stripping of Mwila but said it happened in the normal course of duty.
Mwansa also said there might have been some exaggerations in the way some people reported the matter because there were no witnesses to the incident.
He defended Yogendra, saying Mwila was asked to take off his clothes because he wore two underwear and this raised suspicion.
"This security man suspected he had stolen because he was wearing two things [underwear]," Mwansa said. "He was asked to take off one. The dress code is that he is not supposed to wear two things. People are searched as per normal procedure. In this particular instance he was wearing two pants."
Asked if security officials were allowed to insert their fingers in their employees' anus in the course of searching, Mwansa said he did not think there were any such occurrences.
"It's just that yes, when people want to hide something, they can hide it anywhere," he said. "You have to pampanta [search thoroughly] everywhere...all what has been done is according to the procedure that the security department have put in place. As you know, emerald is not like copper. For copper there is no need for searching people because copper is heavy but for our business, even a small thing is valuable.
And Pwele condemned the stripping of Mwila.
He said though Kagem had the right to search employees, stripping them naked was wrong.
However, Pwele said procedure was not followed in reporting the matter to the police.
He said Mwila, as the victim should have complained to the police.
He said when investigating the matter, police would only go to Mwila and not the union.
Pwele said Mwila needed to get a medical report from police for medical doctors to sign for action to be taken.
However, Pwele said his office was handling the matter with Kagem management and that it would be resolved.
And MMD Lufwanyama constituency chairman Moses Chiyuka demanded Yogendra's deportation or suspension from work.
Chiyuka called on Copperbelt minister Mwansa Mbulakulima and the Human Rights Commission to investigate the matter.
He said Zambian law had no provision for stripping naked and parading an employee who was suspected of stealing.
Chiyuka said the rights of Zambians needed to be protected.
Labels: EMERALDS, KAGEM, LABOUR
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Gemfields, Rox Conduit takeover talks fail
Written by Nchima Nchito Jr
Tuesday, July 21, 2009 6:21:57 PM
NEGOTIATIONS between coloured gemstone producer Gemfields and Rox Conduit (RoxC) regarding a possible takeover have collapsed.
Gemfields is one of the world's leading coloured gemstone companies.
With a strong focus on Zambian emeralds, Gemfields mines, processes and markets both rough and polished gemstones internationally. Kagem, the flagship mine, sold US $12.6 million worth of emerald and beryl in 2007. The mine has consistently produced some of the finest Zambian emeralds since 1984.
RoxC was in negotiations with Gemfields with the intention of taking over the operations of the company. According to a statement from Gemfields, the decision to drop negotiations was reached following extensive consultations with all stakeholders.
"Following careful consideration of the indicative terms of the possible offer and consultation with Gemfields' major independent shareholders, the preliminary discussions between RoxC and the committee in respect of the possible offer have been discontinued," Gemfields stated. "The committee has notified RoxC of that fact and, at this point, the committee does not have any information as to whether RoxC will pursue its interest in the possible offer on the same or revised indicative terms, therefore the company remains in an offer period for the purpose of the takeover code."
In June, Gemfields had revealed the offer by RoxC for a possible takeover bid. Gemfields, which owns Kagem emerald mine in Zambia, forms part of Pallinghurst Resources.
Labels: EMERALDS, GEMFIELDS MINES, GEMSTONES, ROX CONDUIT
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Gemfields announces reduction in mining scale at Kagem emerald mine
Written by Nchima Nchito Jr
Saturday, April 04, 2009 4:01:01 PM
GEMFIELDS has announced the reduction of the scale of mining at its Kagem Emerald Mine and the writing down of the mines value to Zero.
Gemfields is a London listed company which is part of the
Pallinghurst Resources and considered to be one of the world’s largest emerald mines, with 25 per cent owned by the Zambian government. The Kagem emerald mine, where the Zambian government holds a 25 per cent stake, is Gemfields’ principal source of emeralds for its downstream business.
According to mining weekly, the company stated that it had chosen to minimise all nonessential capital, project development, and exploration expenditure until the market prospects for recovery in the gemstone market became clearer.
“The ongoing uncertainty in the global economy, the loss-making performance during the period and the lack of reliable emerald prices make it difficult to justify forecasts showing a positive cash flow with reasonable certainty. This in turn complicates valuing the mine,” it stated.
Gemfields stated that it had opted to take a conservative approach in estimating the emerald prices achievable for the reminder of 2009.
“The company’s performance has been, and would likely continue, to be significantly lower than projected at the time of its listing on the AIM, and would result in operating loss for the financial year ended June 2009,” Gemfields stated.
During the six months ended December 2008, Gemfields reported a loss of US $186.5 million.
Meanwhile, Gemfields stated that it would actively pursue its strategy for integrating the supply chain and improving the marketing of coloured gemstones during the coming year. It is hoped that the efforts would increase the demand for the company’s products, thereby supporting an increase in prices and achievable margins.
“We remain optimistic, however, that our current focus on reducing operating costs and improving mining efficiencies and our efforts to support brand awareness will ensure that Gemfields is well placed to reap the benefits when global conditions improve,” stated company chairperson Graham Mascall.
Labels: EMERALDS, GEMSTONES, KAGEM, PALLINGHURST RESOURCES
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Zambian emeralds
By Chisakulo E.K,Kitwe
Saturday March 17, 2007 [02:00]
The Business Post (13/02/07) covered a short story on Gemfields Resources Plc revealing a rise in sales revenue to US1m worth of emeralds produced from their mine.
This is one of the few companies in our gemstone mining sector which is transparent enough to disclose information and probably uphold the principles of corporate governance through disclosure (reporting productive activities to authorities).
Zambia has some of the best emeralds in the world, and yet there are no benefits accrued from these gemstone mining activities because this sector is characterised by players (mostly foreigners) who are busy draining the country of the much-needed foreign exchange earnings. This is a sector we could rely on in the event that the base metal (copper) prices plummet.
The aspect of value addition and beneficiation for the emeralds has been acknowledged by the government as evidenced in the setting up of the gemstone processing and lapidary training centre in Ndola.
However, the government needs to go further by strengthening the legislative and regulatory framework for the gemstone mining sector. This should ensure that there is enhanced reporting on productive activities as well as enforcement of marketing measures to check foreigners who have for a long time dominated illegal marketing activities of the Zambian emeralds.
The mining footprints left in Kafubu block cannot be matched with the contemptible US dollar figures officially declared to the government considering the highly priced nature of the Zambian emeralds abstracted. It is not too late for the government to curb repatriation of revenue from our country by some of these underground economic activities.
http://www.postzambia.com/post-read_article.php?articleId=23927
Road project in Mbala
By Godfrey Mambwe
Saturday March 17, 2007 [02:00]
I want to commend the government's efforts in spear-heading the project to tar several short-distance roads within Mbala township. The project, which is still in its initial stage has indeed been long overdue.
It is hoped that the project, which has raised a great deal of anxiety and expectations, will not eventually be a white elephant. We have witnessed certain projects commence and later on abandoned because someone somewhere has not been responsible, or did not closely watch the vultures that take advantage of public funds. Otherwise, the recent development in Mbala township is rather progressive and the beginning of more good things to come. What is rural development if these critical issues of development are not taken into account by the government? Bravo the government!
However, I must be quick also to express my disappointment at the failure to consider tarring the road leading up to Mbala General Hospital. This institution should have been critical during the planning. While it is true that this project has a specific budget, failure to make this inclusion is on indication of little or no value being attached to this great institution.
I mean, who does not know how inhuman it is to drive patients, particularly maternal cases from long distances, on these bad roads that are within the hospital vicinity? It is never too late to consider how well this important institution can be serviced in terms of road infrustracture.
Many other roads in Mbala still remain in bad state and almost impassable especially at this time of the year. I implore our councillors, the MP and the authorities that be to rise to the occasion and seriously consider road infrastructure as issues of development.
http://www.postzambia.com/post-read_article.php?articleId=23922
Corrupt deeds
By Fred Mubanga
Saturday March 17, 2007 [02:00]
My heart bleeds every time I read or see destruction of the so-called illegal structures. Desperate poor people who have no connections to the powers that be end up buying land from wrong people.
The government and local authorities can handle the matter in a more respectable and humane manner. It takes years to erect a structure and our authorities took minutes to bring them down.
Let’s be concerned with the 80 per cent poor Zambians especially when we read that leaders declare billions for themselves.
Posterity will judge them and remember that the Bible declares is what we sow what we shall reap.
http://www.postzambia.com/post-read_article.php?articleId=23920
Let's support Levy
By Christopher Sichinga
Saturday March 17, 2007 [02:00]
I read, last Friday, about former lands minister, Kapijimpanga’s message to the President with great disappointment. Disappointed in the sense that she should have properly advised His Excellency the President on such matters. It is, however, gratifying that the President responded well to her letter.
We must support such progressive leadership. For once we should salute the President for his uprightness in the way he handled this matter. I hope the other political leaders will learn something from the President's action.
I must end by advising the leadership privileged to be close to the President to stop unnecessarily putting pressure on the President but provide support to him in line with his vision of zero tolerance on corruption.
http://www.postzambia.com/post-read_article.php?articleId=23924
Finance Bank management
By Banker
Saturday March 17, 2007 [02:00]
I am disappointed with the response by Finance Bank Management on the leakage of information on the President's personal account published in The Post of Thursday March 15, 2007. In the article in question, the bank management appears to be blaming Sata for the leakage
I would like to remind Finance Bank management that politics is a game of mud and stone slinging to gain mileage. In this case, Sata being a politician, he will use any useful information he stumbles upon to expose his opponents for his political gain.
Instead of blaming Sata, Finance Bank management should blame the mole within the system who leaked the information. Banking ethics demand that information on customers' accounts must be jealously guarded and should not be availed to any person not authorised to have such information. This goes to show that their system has been infiltrated.
http://www.postzambia.com/post-read_article.php?articleId=23925
Corruption in job deployment
By Temwani
Saturday March 17, 2007 [02:00]
I want to air my views in your well renowned paper. The nation really appreciates your vigorous approach towards wiping out corruption in government and public organisations.
However, I have noticed that not much has been said about corruption in job deployment. You may wish to know that there are a lot of qualified and vibrant young Zambians out there who are unemployed not because they are unqualified, but because they don’t know the 'big guns' in these organisations.
I believe it is only your paper which can bail out these unfortunate young men and women. Nowadays , there is even a saying 'Uziba ndani?’ If you don't know the right people in the right organisations, you can apply for one million jobs and not be shortlisted for any of them even though you meet the requirements.
Please, away from the politics and confrontations, we are appealing to you to expose the corrupt human resource personnel in some of these government, quasi government and private institutions. You will be amazed how much nepotism, tribalism and 'Uziba ndani' exists in this country.
This is a time bomb which will have a very bad impact in future. Please help this nation have the right people in the right positions, on merit. It seems job adverts are now just a formality. Investigate and you will find the truth.
Concerned youth
http://www.postzambia.com/post-read_article.php?articleId=23904
Corruption investigations
By Concerned citizen
Friday March 16, 2007 [02:00]
I want to air my views on the ongoing land issues bordering on corruption. It is hard to understand what corruption is.
To start with I would like to refer you to the editorial comment several days ago which stated that it was not enough to fire or suspend officials at lands to curb corruption,
The law on allocation of land should be revisited because I am made to believe that there is no procedure that any commissioner has been following which is law from time immemorial, so I am wondering what these investigations are being bordered on.
The President is a lawyer who best understands these issues, he shouldn’t just wake up and make decisions to seal the ministry and fight corruption. What is it that those officials at the ministry have done today that has not been done by others before and will continue being done?
Mwanawasa himself should be investigated as well, the evidence is there at lands which I am sure those aggrieved officials are willing to give especially that it is seen as a crime for Nyirongo and Sichone’s families.
The President should put his house in order before he can sacrifice some unfortunate officals. Let justice not discriminate. We all know that there is so much political influence at that ministry so let a new law be put in place because others have been corrupt and will continue being corrupt with the current situation.
http://www.postzambia.com/post-read_article.php?articleId=23929
Sata and Mugabe
By JJ, Lusaka
Saturday March 17, 2007 [02:00]
It is interesting to recollect after having sensed victory in the just-ended elections, Michael Sata declared that he wanted Robert Mugabe to be the guest of honour at his inaugration. He had in fact hitherto declared Mugabe his hero.
Consequently, I would be interested to learn from Sata what he thinks of the brutality unleashed recently by Zimbabwe security forces on Mugabe’s political opponents. Morgan Tsvangirai's sorry state was seen by all around the world which would make one conclude that only barbarians are capable of such savagery. So Sata and Scott, is Mugabe still your hero?
http://www.postzambia.com/post-read_article.php?articleId=23921
African democracy
By Clergyman
Saturday March 17, 2007 [02:00]
I could not believe my eyes when I saw on BBC news how the law enforcers beat up the Zimbabwe opposition leader Morgan Tsvangirai and his supporters.
This kind of politics is discrediting the little efforts African countries are making to bring about democracy not only as a show to the West but unto ourselves as Africans. Such acts are barbaric, retrogressive and unpalatable in modern times. First it was the farms and now Mugabe and his minions have turned the heat on their own fellow countrymen and women.
Mugabe, should not forget that at one time he was a refugee and he certainly knows how it feels to be oppressed. The freedoms that he fought for whilst in exile are the freedoms he must uphold in a once progressive stable Zimbabwe, which lies in tatters now with inflation running at almost 1, 700 per cent.
Therefore, he must not take them (freedoms) away from his people. No wonder they say the oppressed can turn out to be the worst oppressors and we are definitely seeing it with Mugabe. What is happening now in Zimbabwe is basically apartheid rule except that this time around its blacks oppressing blacks and some pockets of whites still leaving in there. Mugabe must not hide behind the veil of sovereignty of the country. Human rights are human rights and their violation anywhere on the globe must be condemned outrightly.
This is also the time for the African Union (AU) to rise to the occassion; challenge and condemn what is happening in Zimbabwe. I thought the transformation from OAU to AU would bring about tough measures not only to coup plotters but to governments that take freedoms away from their people. We fought apartheid with one voice despite South Africa being a soveriegn state. Why? because our brothers and sister were suffering. Why can’t we do the same with this oppressive old man.
If the latest agenda for the AU to form a 'United States of Africa' in the future is to become a reality, we must already start getting serious with oppressive regimes all over africa to realise the 'USA' dream.
Let’s not treat such regimes with kid gloves and show that the AU means business, and nothing else and that the change of name was not about wearing a new overcoat with old characteristics.
I urge Mugabe to take a leaf from Mandela's words when he came out of prison: "I have come out of prison to liberate both the oppressed (blacks) and the oppressors (whites)" (Long Walk to Freedom).
Mugabe, you were liberated in exile, you liberated your country now it’s time and the hour has come for you to liberate your own people, period! Africa twa sebana pafula!
Labels: CORRUPTION, EMERALDS, HOUSES, LAND, LETTERS, ROADS, ZIMBABWE
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