Lusaka, Zambia – 09 April 2013 – Precious stones miner Gemfields says the Zambian government could curb the company’s ability to sell gemstones outside the country, potentially hurting revenue at its core Kagem emerald mine in northern Zambia.
Fin 24 quotes Gemfields as revealing in a statement that the Zambian Ministry of Mines, Energy and Water Development had directed on Friday that all auctioning of emeralds be held in Zambia, as their sale in foreign markets contributes to capital flight.
Output from the Kagem mine has been sold solely outside the country since 2009, generating US$160 million of revenue from 11 auctions abroad.
Gemfields, which named actress Mila Kunis its brand ambassador earlier this month, mainly mines emeralds at its 75%-owned Kagem mine, but also has interests in ruby and sapphire deposits.
The potential ban would also affect the company’s Kariba amethyst mine in southern Zambia, in which the company has a 50% stake, it said.
Gemfields’ shares were down 19% at 23 pence this morning on the London Stock Exchange.
Source: Fin24. For more information, click here.