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  Indian buyers show their displeasure with Zambian law by staying away from Lusaka sale


May 15, 2013


Indian buyers showed their displeasure with a new law passed by the Zambian government, which bans the sales of Zambian mined stones from taking place outside the country, by staying away from a sale of rough emeralds in Lusaka.

According to media reports, of the 17.3 million carats on offer, only 6.3 million carats found buyers. The average price of a carat was reportedly 7 percent lower than the prices received at the auctions at Jaipur in June last year.

In early April Zambian Mining Minster Yamfwa Mukanga announced that the government would restrict the sale of emeralds mined on its territory to local auctions, including sales by Gemfields, which produces the major part of its output at the Kagem emerald mine in Zambia.

Reportedly, fewer than 40 percent of the Indian traders who normally take part in Zambian rough sales were present at the most recent auction in Lusaka. Typically 90 percent of material is consumed by the Indian industry.

Speaking to Business Line from Jaipur, Rajiv Jain, regional Chairman of the Gem and Jewellery Export Promotion Council, said that Indian participation at the auction was low since traders preferred not to incur travel costs.

"Taking into account the prevailing uncertainty surrounding Gemfields' future ability to freely sell emeralds outside of Zambia", said Ian Harebottle, CEO of Gemfields, the results were "reasonable but probably not as optimal as they could have been."

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