The world’s single-largest producing emerald mine. The 41 square kilometre licence area is located in the Ndola Rural Emerald Restricted Area and lies south of Kitwe and west of Ndola, in Zambia’s Copperbelt Province. It is 75% owned by Gemfields and 25% owned by the Government of the Republic of Zambia. The mine comprises three open pits.
For more information on Gemfields, please visit: www.gemfields.com
Kagem produced 156,700 carats of premium emeralds in 2023.
Kagem has generated total cumulative auction sales revenue of USD1,068 million through 50 auctions since July 2009.
KAGEM
In 2007, Gemfields Group Limited (formerly Pallinghurst Resources Limited) (“GGL”) identified the coloured gemstone sector as an “overlooked” industry that offered a unique investment opportunity. Demand for coloured gemstones by the jewellery and fashion sectors was increasing, but supply was constrained and fragmented due to the lack of large, reliable producers able to consistently deliver sufficient quantities of gemstones. Pallinghurst saw an opportunity to unlock value by bringing capital, scale and professionalism to the industry, to which end it assembled a consortium of Pallinghurst Co-Investors, including the Group.
Kagem, an emerald mine in the “Copperbelt” region of northern Zambia, currently producing nearly a quarter of the world’s emeralds, was the consortium’s first acquisition in the sector. Kagem had been producing emeralds for nearly 20 years but was performing badly due to a combination of poor management, theft, shareholder conflicts and a lack of capital. Through a series of transactions, the consortium acquired 75% of Kagem, with the balance held by the Government of the Republic of Zambia. In pursuing its vision for consolidating the sector, the consortium acquired majority control of AIM-listed Gemfields plc (“Gemfields”) by selling Kagem to Gemfields in a reverse takeover during 2008.
MBUVA-CHIBOLELE
The Mbuva-Chibolele licence is located on the Fwaya-Fwaya–Pirala Belt in the NRERA within the Kafubu area of the Copperbelt Province of Zambia, on the southern banks of the Kafubu River. It lies along the west-southwest strike from the nearby Fwaya-Fwaya emerald mining zone adjacent to the Kagem licence area. This pit was kept under care and maintenance from 2007 onwards so as to focus on operations at Kagem. However, following GGL’s acquisition of Gemfields, a decision was made to expand the Group’s emerald footprint and, accordingly, operations at Mbuva- Chibolele were resumed in late 2017.
During October 2019, in accordance with the Licence Transfer Agreement between Gemfields Mining Limited and Kagem, the Chibolele, Kamakanga and Arinus licences held by Gemfields Mining Limited were transferred to Kagem. The transfer was approved by the Ministry of Mines and Mineral Development. In February 2020, the remaining eight licences included under the same Licence Transfer Agreement were approved by the Ministry of Mines and Mineral Developments and transferred.
Gemfields implemented an innovative grading and auction system for selling its rough gemstones. The auctions are held in secure locations with the material separated into homogenous lots and certified as either having been produced by Gemfields or obtained by Gemfields from third parties. The world’s leading rough gemstone buyers submit sealed bids for individual lots. A sale occurs if the highest bid received exceeds a pre-determined, but undisclosed, reserve price. The auctions have brought a level of professionalism and transparency previously not seen in the industry.
As there was no industry standard for evaluating rough coloured gemstones, Gemfields established its own grading system to assess each gem according to its individual characteristics (size, colour, shape and clarity). This approach has been instrumental in providing buyers with confidence in the consistent quality of the material on offer. Gemfields used this grading system to develop two auction classes, one offering higher quality gemstones and the other for the larger volume of lower quality gems.
Since its first auction in July 2009, Gemfields has seen increased demand for its responsibly sourced and transparently supplied emeralds, highlighting the success of its formalised and consistent method of marketing rough coloured gemstones by auction.
Gemfields’ 50 auctions of emerald and beryl mined at Kagem since July 2009 have generated USD1,068 million in aggregate revenues. Gemfields continues to experience significant demand for its responsibly mined emerald and beryl with auctions achieving record per carat prices and auction proceeds in recent years.
Through our auction of rough emeralds, Kagem generated good auction revenues of USD90 million in 2023, including our largest ever revenue-earning auction of Zambian emeralds in June 2023.
Gemfields is delighted to introduce “Chipembele”, the latest and largest significant gemstone discovered at the Kagem emerald mine in Zambia.
Please click below to download the ‘Chipembele’ press statement.
Click here to visit ‘Inkalamu’, the 5,655 carat Lion Emerald
In 2023, Kagem Mining Limited formally launched an operational grievance mechanism (“OGM”). The OGM has been founded on stakeholder consultations and research into international best-practice in relation to operational-level grievance mechanisms. The objective of the OGM is to enhance Kagem’s ability to effectively address negative impacts to the internationally recognised human rights of local community members that Kagem is connected to through its emerald mining operations and business relations. The below document provides further information regarding the OGM:
The OGM’s first progress report from the independent monitor was finalised in January 2024, and can be found below:
The OGM’s second public progress report from the independent monitor (Jonathan Drimmer) was completed in August 2024, and can be found below: