Gemfields Group Ltd said on Wednesday that Zambia has re-introduced a 15% export duty on emeralds, raising the tax bill for its operations in that Southern African country.

The London-headquartered gemstones miner and marketer said this export duty now applies on top of the existing 6% mineral royalty tax, meaning that local mine operator Kagem Mining Ltd - which is 75% owned by Gemfields - faces an effective tax on revenues of 21%.

The company said it became aware that a new statutory instrument in Zambia dated December 30, 2024, which came into effect on January 1, 2025. It has revoked the 2019 suspension of a 15% export duty on precious gemstones.

The 15% export duty was originally introduced at the start of 2019 by the previous Zambian government. After considerable effort by the Zambian emerald companies, the export duty was suspended at the end of 2019 and ceased to apply on January 1, 2020.

In 2023, when no export duty was in place, Kagem paid an effective 31% of its revenues to the Zambian government in the form of mineral royalty, corporation tax and dividends, Gemfields said.

On Wednesday, Gemfields said there was no notice or prior consultation regarding the re-introduction of the 15% export duty.

‘Gemfields understands that several additional measures have also been introduced in other areas of the Zambian economy to enhance Zambian government revenues in 2025,’ the group said.

In Johannesburg, Gemfields shares slumped 12% to R 1.59 on Wednesday morning. They slid 5.0% to 6.65 pence in London.

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