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A rough emerald sorter at the Kagem mine in Zambia. (Photo Credit: Gemfields)



  All lots sold at Gemfield's rough emerald auction in Zambia


July 14, 2013


The saga involving Gemfields and the Zambian government continues, with the colored gemstones producer, which in June decided to postpone its auction in Singapore, instead conducting a rough emeralds auction in Lusaka, Zambia, from July 15 to July 19. According to Gemfields, more than half a million carats of rough stones were sold, bringing in $31.5 million.

Among the stones sold was a 2,000-carat emerald, which was purchased by Israeli gemstone manufacturer Gemstar. The exact price paid for the stone was not revealed.

In total, the auction featured 583,448 carats of emeralds from Gemfield's Kagem mine, and all lots were reportedly sold. Of the 40 companies invited to the sale, 37 turned up, and 36 of them placed at least one bid for the 18 allotted lots. The event attracted a great deal of local coverage and was visited by the Zambian first lady, Dr. Christine Kaseba.


Zambia's former Minister of Mines, Energy and Water Development Yamfwa Mukanga had thrown a spanner in the works in April, when he called for restraints on producers from auctioning emeralds outside of the country. The minister's primary target was Gemfields, which owns 75 percent of the Zambia's largest emerald mine, Kagem, with the government owning the remaining 25 percent.

The auction dispute cut into Gemfields' revenues for the fiscal year ended June 30. During the fiscal year the company completed only two auctions, generating income of $42 million. It held four auctions the previous fiscal year, generating revenues of $77.9 million.

Since it launched its formal auction program in July 2009, Gemfields has held 13 sales, bringing in more than $200 million.

The uncertainty over Gemfields' marketing program has not put a damper on production at Kagem, which increased 42 percent to 29.99 million carats for the 12-month period ended in June. The average emerald grade for the year increased 38 percent to 283 carats per ton and production costs fell 26 percent.

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