17 July 2024
Kagem provides USD 1.5 million dividend to Zambian government
Kagem Mining Limited is proud to have provided a dividend payment to the Government of Zambia in respect of 2023 performance – underscoring its commitment to ensuring that mining profits benefit their country of origin.
The Lufwanyama-based emerald mine, majority-owned and operated by Gemfields, is believed to be the world’s single largest producing emerald mine and consistently strives to be a force for good. It has a long track record of funding initiatives that have contributed to improving the quality of life in the region.
Kagem handed over a cheque for USD 1.5 million to the Industrial Development Corporation (IDC), the investment arm of the government, which owns 25% of the mine. These funds represent dividends from 2023 and bring the total paid to the government by Kagem for 2023 to USD 28.3 million.
As well as contributing to Zambia’s economic development, this payment is important in terms of providing financial transparency – as set out in the ‘G-Factor for Natural Resources’ model championed by Kagem’s parent company Gemfields. The ‘G-Factor for Natural Resources’ measures the percentage of revenue a company has paid to its host government in primary and direct taxes and, where applicable, dividends.
The dividend from Kagem was well received by members of government and the community. IDC chief executive officer Cornwell Muleya hailed the gesture: “The record of Kagem has been impressive and consistent… You have a been a pioneer in the mining sector here in Zambia.”
Kagem’s chairman, Dr Sixtus Malenga, said: “At Kagem, we believe that responsible management of our natural resources is key to sustainable development. This contribution is testament to our unwavering commitment to contributing to Zambia’s economic and social fabric.”