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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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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Nchito told to probe sale of Roan Mine, Lima Bank
By Times Reporter
PRESIDENT Michael Sata has directed newly-appointed Director of Public Prosecutions (DPP), Mutembo Nchito, to launch a wide-scale investigation into the privatisation of Roan Antelope Mining Corporation of Zambia (RAMCOZ) and three other firms that were sold during the Frederick Chiluba administration.
Other firms lined up for probe are Kagem Mining Company in Kitwe, the defunct Lima Bank and Hotel InterContinental in Livingstone, which was sold to Sun International.
The directive to conduct the investigation has been prompted by what President Michael Sata yesterday described as " stinking corruption " surrounding the sale of the four companies.
Mr Sata was speaking shortly after he swore-in Mr Nchito as DPP at State House.
He told Mr Nchito, whom he elevated to State Counsel, to bring the culprits to book.
" Look at some of the old cases. The privatisation of Roan Antelope Mine, the privatisation of Kagem, the privatisation of Lima Bank and the privatisation of Hotel InterContinental in Livingstone. All those cases are stinking with corruption," the President said.
He said the team that formed the backbone of the dissolved Task Force on corruption had been brought to Government along with former chairperson, Max Nkole, who is Permanent Secretary at the Ministry of Home Affairs.
"You have all been called back. Your former chairman is Permanent Secretary and I am sure that with the Attorney General (Mumba Malila) who was once harassed because they did not like him, we will leave Zambia better than we have found it," Mr Sata said.
And United Party for National Development (UPND) president, Hakainde Hichilema, said he does not have anything to fear because he never stole any money from the privatisation process.
Mr Hichilema said his firm, Grant Thornton, was merely engaged as a consultant to evaluate the assets ahead of the privatisation process and was paid money on the basis of the contract signed with the Government.
Mr Hichilema said the Government was on a mission to silence opposition political leaders, but added that he would never succumb to any form of threat.
And President Sata has also revealed that some Chinese companies operating in Zambia were still funding the former ruling party, the MMD. He asked Mr Nchito to liaise with the Drug Enforcement Commission (DEC) for details.
" If you get in touch with the people at the Drug Enforcement Commission, they will give you the details and they will give you the names," Mr Sata said.
But MMD national chairperson Michael Mabenga denied that Chinese companies were funding the former ruling party.
Mr Mabenga claimed that some senior officials in the Government were misleading the President.
And the President has urged Mr Nchito to probe foreigners associated with the purchase of Zamtel for allegedly corrupting Zambian officials to secure the deal in the previous administration.
" When you go to Zamtel, don’t look at Zambians only. These Libyans are the ones who corrupted Zambians. So don’t go for Zambians you must also go for the Libyans. They are the ones who had dirty money and dirty hands. Sort them out," demanded Mr Sata.
The President said late Republican president Levy Mwanawasa had launched a clean fight against corruption but the people who inherited the institutions that were set up abandoned the fight.
"There was once a President of the Republic of Zambia and this President trusted human beings. One of those human beings he trusted was the Attorney General whom he also made Minister of Justice. And then he went to pick somebody from a farm in Chipata. He also trusted him.
"They bashed all of you people in the Task Force and you were like orphans. Today we have the most deadly legal team, the Attorney General, Solicitor General (Musa Mwenye) and yourself. We will expect you to assist the judiciary," the President said.
The swearing-in ceremony was also attended by Vice-President, Guy Scott, Chief Justice, Ernest Sakala, Justice Minister, Sebastian Zulu, Home Affairs Minister, Kennedy Saken, Defence Minister, Geoffrey Mwamba and Mr Malila.
And former Finance minister Situmbeko Musokotwane has advised against repossessing 75 per cent shares in Zamtel, saying the move would have a huge impact on the future of the country’s economy.
Speaking at a briefing in Lusaka yesterday, Dr Musokotwane said the reversal of Zamtel would cost the country between US$400 million to $1 billion as compensation to Lap Green Networks.
"Given the price Lapgreen paid for the company, the extra investment they have made since then and the positive turn around in the business, the compensation demand could be anywhere between $400million to $1billion," he said.
Labels: KAGEM, MICHAEL SATA, MUTEMBO NCHITO, PRIVATISATION
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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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Stripping of Kagem miner by guard is criminal – MUZ
By Mutuna Chanda in Kitwe
Sat 24 Oct. 2009, 04:00 CAT
MINEWORKERS Union of Zambia (MUZ) president Rayford Mbulu has said the stripping of a Kagem miner by a security guard is criminal.
In an interview yesterday after he met Kagem management on Thursday, Mbulu said MUZ demanded that the security guard identified as Gurung Yogendra be removed from plant operations because he was a danger to society.
"We met Kagem ... and for us as a union we made certain demands and one demand is that very stern disciplinary action should be taken against that Indian who searched our member mercilessly; an act which is totally contrary to company policy," Mbulu said.
"He actually took the law in his own hands. That is illegal in as far as we are concerned and no law in this country supports such kind of search. We know we've got our own policies, procedures and practices but there is no policy, there is no procedure, there is no practice in the mining industry that supports searching an individual to the extent of stripping them naked because this is inhuman; it's actually criminal, it's an act that requires absolute punishment. And we have even said the best Kagem management can do for now is actually sideline that gentleman ... that man has been taken away from the plant pending investigations and even after investigations we don't need him on the plant."
Mbulu said having such a security guard at the plant could precipitate a reaction from mine workers because they were human beings who had feelings.
He further challenged Kagem management not to only be quick in meting out disciplinary action when it involved unionised workers but slow to act when the tide was against them.
He said MUZ having carried out its investigations also established that Yogendra stripped Davison Mwila a miner at Kagem on suspicion that he may have stolen an emerald on October 8.
Mbulu also challenged the government to be proactive in conducting inspections at work places and dealing with such acts.
"Government must come in to regulate, see exactly the conditions under which the people are working," said Mbulu.
"These people are not only mine workers, these people are citizens of this republic, they deserve the protection of government and I believe we just watch the situation, let it be what it is I am telling you that at the end of the day Zambians will always be subjected to such kind of ill treatment."
Sources at Kagem last week indicated that stripping of workers was not new and that in some instances, security guards of Asian origin even inserted their fingers into private parts of miners they suspected to have stolen emeralds.
Kagem senior manager for corporate affairs Jonas Mwansa defended the stripping of Mwila and said it occurred during the normal course of duty.
He defended Yogendra that what prompted him to ask Mwila to take off his clothes was that he found that he wore two sets of underwear and that this made him become suspicious.
"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 to employees' private part in the course of searching, Mwansa said he did not think that there were any such occurrences.
"It's just that yes, when people want to hide something, they can hide it anywhere," said Mwansa.
"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.
Labels: KAGEM, LABOUR, MUZ, RAYFORD MBULU
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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 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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KAGEM snubs mines deputy minister
By Correspondent
Monday March 03, 2008 [03:00]
KAGEM Emerald mining company management on Saturday snubbed mines deputy minister Boniface Nkhata despite being informed of his visit to the mine. The Emerald and Semi-precious Minerals association of Zambia (ESMAZ) organised Nkhata’s visit to the mine but the Indian managers did not meet him although they were seen driving within the mine premises. Only the Zambian manager, Marlon Zimba, was delegated to explain the operations of the company to Nkhata.
Nkhata, who is in charge of small-scale mines, said he was equally disappointed by the attitude of the management at the company. He said the managers’ attitude was a clear indication that they had no respect for the government, which allowed them to come and mine emeralds in the country.
Nkhata was also shocked at the deplorable conditions in which state police officers were living, at Kagem Mine and urged the emerald mining company to improve the situation. Nkhata found out that the offices had poor diet mainly consisting of kapenta prepared without cooking oil.
He said he was disappointed that the management at the mining company had not bothered to rehabilitate the shelter for the security officers despite the fact that they were guarding their emeralds.
He said, four years ago, former Home Affairs Permanent Secretary Peter Mumba had instructed the management at Kagem to rehabilitate or put up decent shelters for police officers, but up to now the company had done nothing.
He said it was disappointing that the company which was making huge profits from the emeralds could fail to rehabilitate the structures for the officers, let alone, improve their diet.
He said the interests of Zambians was not being protected at the emerald mine because State Police was not allowed to enter the strong room where they separate good stones from waste.
“I must say I am not happy with what is happening at Kagem Mining Company because the management seems not to care about the interests of Zambians. It appears that their interest is only to make huge profits from our gemstones and they do not care what happens to Zambians,” he said.
“When I came they snubbed me and did not even bother to talk to me and now I am seeing the very deplorable state in which police officers are living in,” Nkhata said.
And Zimba tried to defend his management that it had been there for three months only and not much could be expected from it.
ESMAZ general secretary Victor Kalesha said he was disappointed that the Indian management at the Emerald mine snubbed the minister despite being informed of his visit to the mine.
The ESMAZ team, led by association president Benjamin Njanji advised Zimba to explain to his management that it was wrong for them to treat Zambians and government ministers like they were nothing.
“You Zimba, you should not defend things which you do not know. We are not happy with what these Indians are doing here, where they snub government officials and keep police officers who are guarding the emeralds in deplorable conditions. So you are supporting them for snubbing the minister,” said Kalesha.
“What we expect of you, is to tell your management to do things that will make Zambia happy and not miserable as if it is not their country. If investors come here, they should share their joy and happiness with Zambians. We want investment that will benefit both investors and Zambians.”
Labels: KAGEM, MINISTRY OF MINES AND MINERALS DEVELOPMENT
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