London-listed Gemfields said on Wednesday that it would lobby the Zambian government to suspend the newly reinstated 15% export duty on precious gemstones, which would directly impact the emeralds mined by its 75%-owned Kagem Mining.

The export duty, effective January 1, is in addition to an existing 6% mineral royalty tax, bringing Kagem total effective tax on revenues to 21%. This is before factoring in the 30% corporation tax. In comparison,  Brazil and Colombia, the world’s other top emerald exporters alongside Zambia, have significantly lower taxes.

Gemfields pointed out that Brazil’s aggregate tax on revenues was 2% (in the form of mineral royalty) and Colombia’s aggregate tax on revenues was 2.5% (being a 1.5% mineral royalty and a 1% national emerald fund contribution) in addition to corporation taxes of 34% and 33%, respectively.

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.

The 15% export duty was initially introduced at the start of 2019, but was suspended later that year after lobbying by the emerald sector. The suspension remained in effect until January 1, 2025, when the duty was unexpectedly reinstated without notice or prior consultation, according to Gemfields.

“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 company will engage with the Zambian government to seek the re-introduction of the suspension of this export duty or to remove it from the legislation given the impact on sector sustainability and investment attractiveness,” the miner said.

“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 company will engage with the Zambian government to seek the re-introduction of the suspension of this export duty or to remove it from the legislation given the impact on sector sustainability and investment attractiveness,” the miner said.