FOR IMMEDIATE RELEASE
WITH PICTURE
JULY 17 2024
Kagem delivers ZMW 38 million (USD 1.5 million) dividend to the IDC
Lusaka, Zambia – Kagem Mining Limited (Kagem) has handed over ZMW 38 million (USD 1.5 million) to the Industrial Development Corporation (IDC). The funds represent dividends from 2023 to the government’s investment arm, which owns 25% of the shares in what is believed to be the world’s largest producing emerald mine, and underscore Kagem’s ongoing commitment to contribute to Zambia’s economic development.
The handover highlights Kagem’s continued dedication to striving towards responsible mining practices and transparent financial management and reinforces the company’s commitment to adhering to the ‘G-Factor for Natural Resources’ model championed by its parent company Gemfields.
IDC chief executive officer, Mr Cornwell Muleya, commended Kagem’s consistency in delivering value in the gemstone sector saying, “The record of Kagem has been impressive and it has been consistent. You have been one of those key investments which has always produced a return, not only for the IDC but also for the people of Zambia. You have a been a pioneer in the mining sector here in Zambia, not only in terms of your contribution in relation to the ‘G-Factor for Natural Resources’ but also in developing the gemstones industry in Zambia. You have built your position as number one in this field, making Zambia proud and by extension making the IDC proud because we are your partner and the shareholder on behalf of the Zambian people.”
Kagem has been at the forefront of adopting the ‘G-Factor for Natural Resources’, a pioneering measure that reveals the percentage of a mining company’s revenue paid to the Zambian government in primary and direct taxes and dividends, clearly showing how the country has benefited from its natural resources.
For 2023, a total of ZMW 732 million (USD 28.3 million) was received by the Zambian government from Kagem’s revenue, which amounts to a ‘G-Factor for Natural Resources’ figure of 31%.
Dr Sixtus Mulenga, Chairman of Kagem Mining Limited, highlighted the significance of this initiative, “The implementation of the ‘G-Factor for Natural Resources’ has made the investment environment in Zambia more conducive and attractive to both local and international investors. By openly sharing the amount of wealth generated from our natural resources, we create an environment of trust and accountability, essential for long-term investment and sustainable growth.”
Dr Mulenga commended the Zambian government’s ongoing efforts to foster an investor-friendly climate through the implementation of transparent and accountable policies.
“We applaud the Ministry of Mines and Minerals Development, Ministry of Finance and National Planning and other relevant bodies for their steadfast commitment to creating a conducive environment for businesses to thrive. As these policies continue to evolve, the future of investment in Zambia looks bright and promising.”
Kagem’s Chair also implored other investors in the country to embrace the ‘G-Factor for Natural Resources’, enhancing the transparency and accountability of their operations. “Adopting the ‘G-Factor for Natural Resources’ is not just a good business practice; it is a commitment to the people of Zambia, ensuring that our natural wealth translates into tangible improvements in their lives.”
The ZMW 38 million (USD1.5 million) contribution from Kagem will support the IDC and the Government of Zambia in funding projects critical to national development. These funds will likely be allocated to sectors such as infrastructure, education, and healthcare, driving progress and improving the quality of life for Zambians.
“At Kagem we believe that responsible management of our natural resources is key to sustainable development,” Dr Mulenga emphasised. “This contribution is testament to our unwavering commitment to good natural resources stewardship and our dedication to contributing to Zambia’s economic and social fabric.”
Kagem Mining Limited remains committed to striving towards transparency, legitimacy and integrity, coupled with responsible practices, and looks forward to continuing its contributions to Zambia’s prosperity.
-Ends-
CONTACT
Enquiries
Gillian Langmead
Langmead & Baker Ltd
Tel: +260 979 060705
info@langmead.com
Head office
Helena Choudhury
Head of PR and Communications
Tel: +44 (0)207 518 3420 / +44 (0)7493 237598
helena.choudhury@gemfields.com
Albertina Namburete
PR Manager
Tel: +44 (0)783 325 7387
Albertina.namburete@gemfields.com
Kagem responsible sourcing highlights
- Kagem is committed to ensuring that the community continues to benefit positively from its operations through various sustainability programmes focused on alleviating poverty and aligned with government policies, the UN Sustainable Development Goals (SDGs) and Vision 2030.
- Up to December 2022, Kagem had spent USD 3 million on community projects, and has committed further.
- Kagem constructed, expanded and rehabilitated 5 schools providing education to more than 2,000 students.
- Kagem committed USD 345,000 on top of previous provisions of USD 345,000 in university scholarships in geology and mining engineering.
- Kagem and Gemfields Foundation built and equipped two computer labs at Kapila Primary School and Chapula Secondary School.
- Kagem constructed 1 fully equipped health centre, the Nkana Health Centre, serving a population of 10,000.
- Kagem improved Chief Nkana and Chief Lumpuma’s palaces and rehabilitated 18.7km road connecting Chief Nkana and Chief Lumpuma’s chiefdoms.
- Kagem provides support to 7 farming associations benefiting more than 100 farmers and their families.
- Kagem supports the Zambian Carnivore Programme (ZCP) having committed a total of USD 400,000 since 2018 to 2027 and provided a one-off donation of USD 70,000 to the North Luangwa Conservation Programme (NLCP).
- Kagem signed a Memorandum of Understanding (MoU) with the Government of Zambia to fund the construction of the Chapula Vocational Training Centre in Lufwanyama.
- Kagem employs more than 1,500 people, of which, 94% are Zambian nationals.
About Kagem Mining Limited
Kagem Mining Ltd, based in Lufwanyama, is believed to be the world’s single largest producing emerald mine. Kagem is 75% owned by Gemfields, in a model partnership with the Zambian government.
Kagem aims to emulate the values of Gemfields and operate in a way that contributes positively to the national economy, while taking a leading role in modernising the coloured gemstone sector and building sustainable livelihoods for the communities around the mine. Kagem believes that coloured gemstones should be mined and marketed by championing three key values – transparency, legitimacy and integrity.
Gemfields is a world-leading responsible miner and marketer of coloured gemstones. In addition to Kagem, Gemfields is the operator and 75% owner of Montepuez Ruby Mining in Mozambique (at one of the most significant recently discovered ruby deposits in the world), as well as bulk sampling licences in Ethiopia, amongst others.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of coloured gemstones to the global jewellery market.
Fabergé – an iconic name with an exceptional heritage – is a member of the Gemfields Group. The beauty of Fabergé’s designs and craftsmanship, helps to raise consumer awareness of responsibly mined coloured gemstones.
As well as supplying a significant share of the world’s rough rubies and emeralds, Gemfields initiates activations to build desire for coloured gemstones: for example, collaborations with international jewellery brands and other creative partners. Often surprising, unexpected and unique, these collaborations are chosen to promote consumer awareness and increase the appeal of coloured gemstones, raising their profile, and, in turn, providing greater benefit to their place of origin in Africa.
Gemfields: Gemfields.com | Investors | Foundation | Instagram | Facebook | Twitter | YouTube
Fabergé: Fabergé.com | Instagram | Facebook | Twitter | YouTube
Kagem Mining: LinkedIn
Montepuez Ruby Mining: LinkedIn