GEMFIELDS SHOWCASES ZAMBIAN EMERALDS TO THE WORLD

Gemfields, which owns 75 percent of the Kagem emerald mine in Lufwanyama District in partnership with the government of Zambia, has recently been highlighting the nation’s gemstones at the world’s largest mining investment event

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The stylish Cape Town initiative demonstrated the importance of a sophisticated high-end international marketing campaign to support the on-going promotion of Zambia’s gemstone resources if they are to continue to compete on the global stage and the need for further investment and the continued involvement of significant of market leaders if this sector is to achieve its full potential.

Delegates and dignitaries including Zambia’s Minister of Mines, Energy and Water Development, Hon. Yamfwa Mukanga, Mozambique’s Minister of Minerals and Natural Resources, Excellency Minister Esperanca Laurinda Bias and various others, attended the glittering function hosted by the company in Cape Town last week as part of the Global ‘Investing in Africa’ Mining Indaba.

The event, which formed just one part of Kagem and Gemfields’ global marketing strategy to continue to put Zambian emeralds at the forefront of the world’s fine jewellery industry, was attended by government representatives, investors, retailers, high net worth individuals and various jewellery designers. Billboard advertisements were also strategically placed at the Cape Town International airport to target the large number of international stakeholders attending the event and featured Africa’s rare coloured gemstones including Zambian emeralds and amethyst and Mozambican rubies.

The company is pioneering a revolutionary approach to the gemstone sector that integrates world-class mining, partnering local stakeholders, a strong focus on the international marketing of Africa’s rare coloured gemstones, a commitment to the ongoing development of the local communities in which it operates and the delivery sustainable value addition in significant areas of core competence.

Kagem has now embarked on a new phase in its development under which it is looking to further increase its production outputs and by association its already significant contributions to Zambian taxes and direct foreign earnings, after being rescued from bankruptcy in 2008 by Gemfields, which has turned the company around from a loss-making, debt-ridden shell into a thriving enterprise that now produces approximately 20 percent of the world’s global rough emerald supply.

“The Indaba is a key date on the calendar for all mining related stakeholders, and as a world leader within the coloured gemstone industry it is vital for us to meet with other influential participants, share ideas and emphasise the quality of Zambia’s products,” said Kagem’s Chief Executive Officer, Ian Harebottle.

“The effective long-term marketing of high quality gemstones needs to be conducted on a global stage as we cannot rely solely on local consumers to drive demand if we ever hope for our goods to compete on an equal footing with diamonds and other luxury goods. The wider picture involves numerous events such as what we have initiated at the Indaba and all of which requires a sizeable investment, proven expertise and a track record of delivery. Gemfields ability to stage these sophisticated high-quality functions is critical to our overall strategy and the support we have thus far received from key government stakeholders in each of the various jurisdictions in which we operate is both respected and appreciated. Our governments are our partners and their ongoing support and commitment to our endeavours provides us with the encouragement required to redouble our efforts” he added.

The ‘Investing in Africa’ Mining Indaba is the world’s largest mining investment event and Africa’s most significant event. For more than 19 years now the key stakeholders in the Mining Indaba, along with their partners in Africa, have channelled many billions of dollars of foreign investment into the mining value chain. Mining Indaba is the world’s largest gathering of mining’s most influential stakeholders and decision-makers vested in African mining.

Worldwide production of emeralds is estimated at US$500 million (ZMW2.6 billion) per year, of which Zambia accounts for around one third – or US$167 million (ZMW860 million). Kagem is responsible for mining approximately 50 percent of Zambia’s emeralds or US$80 million (ZMW410 million) – yet is estimated to pay up to 90 percent of the tax generated from the gemstone sector.

Kagem, which is based in Lufwanyama, employs 672 staff and contractors in Zambia, has an on-going programme of employee training and development designed to constantly improve the lives of its employees and the local people resident in the communities in which it operates, and is looking to redouble these efforts as it looks to significantly increase its production outputs over the coming years