4 April 2022
Kagem delivers USD 1.5 million dividend to the IDC
Kagem Mining announces that it has delivered a dividend of USD 1.5 million to the Zambian government’s Industrial Development Corporation (IDC), which owns 25% of the emerald mining company in Lufwanyama.
This dividend, the first since 2016, is in addition to the USD 5.6 million mineral royalty tax paid on the sale of emeralds at auction during 2021 and the USD 11.9 million corporation tax payable for the year ended 31 December 2021.
This dividend “speaks to the values of transparency, legitimacy and integrity” that Kagem and Gemfields share and is “a clear demonstration of the successful model partnership between Kagem and the government through the IDC”, said Kagem Board Chairman Dr Sixtus Mulenga.
It is also a testament to Kagem’s strong performance in 2021, proving that the mine has weathered the challenges of Covid-19. Kagem was significantly affected, with a suspension on operations in place for a year from March 2020. Yet the mine protected the jobs of every employee by paying salaries to the employees and sheltering them from redundancy despite negligible revenue and zero productivity.
Three emerald auctions were held in 2021 – with the end-of-year auction setting new records for both the highest revenue and highest average price per carat achieved at any Kagem auction. The auction included the sale of the extraordinary “rhino emerald” known as Chipembele. Overall production at Kagem in 2021 almost equalled pre-pandemic levels of 36.3 million carats, with overall production for the year amounting to 32 million carats.
Kagem attributes its stellar achievement to its team, who have enabled the mine’s continued excellent production run of premium emeralds, which grew to above the levels seen pre-pandemic.