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Gemfields, the majority owner of Kagem Mining Limited, has reportedly suspended emerald sales following Zambia’s decision to reintroduce a 15 percent export tax, effective January 1, 2025.
Zambia, the world’s second-largest emerald producer after Colombia, first imposed the 15 percent export duty in 2019 but scrapped it a year later due to industry pressure.
The government reinstated the tax this year without prior consultation, drawing sharp criticism from Gemfields.
The company confirmed the suspension in its December operational update, stating:
“Kagem has paused mining from the start of 2025 as previously announced, utilising its upgraded wash plant to process its significant stockpiles. Emerald exports are, since January 1, 2025, paused while Zambia’s reintroduced 15 percent export duty remains in place. Kagem anticipates that the duty may be revoked and allow a commercial-quality emerald auction to go ahead in the first quarter of 2025.”
In December, Kagem Mining Limited also announced a six-month suspension of mining operations at its Lufwanyama mine, citing an oversupply of Zambian emeralds at discounted prices in 2024, exacerbated by conflicting auction dates among local producers.
The decision to halt sales comes despite Mines and Mineral Development Minister, Paul Kabuswe confirming that the government was reviewing the tax.
“We are a listening government. We are studying the concerns that have been raised by stakeholders. We will meet them and do something about it,” Kabuswe said at a media briefing.
At the Future Minerals Forum 2025 in Riyadh, Saudi Arabia, Jito Kayumba, Special Assistant to the President on Finance and Investments, also hinted at a possible suspension of the tax.
Gemfields’ concerns have been echoed by the Federation of Small-Scale Mining Associations of Zambia (FSSMAZ), which warned that the tax could damage investor confidence, reduce production, and lead to job losses.
FSSMAZ president, Joseph Mwansa, described the levy as a deterrent to investment, saying:
“The lack of consultation and research on the impact of this tax hike is concerning. Without thorough analysis of international best practices, this move will discourage investors, increase prices, and make Zambian emeralds uncompetitive in the global market.”
The mining sector now awaits the government’s final stance on the controversial tax, which could determine the future of emerald exports in Zambia.
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