Business

Kagem shareholders in windfall

NANCY SIAME, Lusaka
KAGEM Mining Limited, the world’s single largest emerald-producing mine has paid out US$14 million to its shareholders in dividends this year.
The Lufwanyama-based mining company has paid the dividends to the Industrial Development Corporation (IDC), which owns 25 percent of the company on behalf of Government, and Gemfields, which owns the remaining 75 percent.
The dividends for the year ending June 30, 2015 are the third paid to shareholders by Kagem and bringing to US$30 million the total dividends declared in the last three years.
According to a statement released yesterday, these dividends are in addition to the over US$43.7 million generated by the company in corporate taxes and mineral royalties in the last three years.
Kagem chief executive officer Ian Harebottle said the development signifies that the company is now profitable as it is able to pay dividends, which is good news for Government and the economy.
Mr Harebottle said this demonstrates the achievements when national resources and world-class private sector expertise join forces to create a flagship global business.
“Our three consecutive years of dividends, supported by the considerable increase in jobs and skills that have been created at the mine, show that the benefits of collaboration can be shared by all parties and in an equitable manner,” he said.
He said global appreciation and demand for coloured gemstone continues to increase at a steady pace, largely supported by Gemfields global marketing efforts.
Since Gemfields took over operation of the mine in 2008, it has invested US$60 million in turning around Kagem from its long history as a loss-making mine to one where it has been able to increase achievable prices on the global markets and contributing over US$360 million in taxes.

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