At a Glance
- Gemfields’ Kagem mine in Zambia generated $32 million from its September emerald auction.
- The sale featured the record 11,685-carat “Imboo” emerald, attracting strong global buyer interest.
- Proceeds will support Zambia’s economy, with royalties boosting state revenue and foreign exchange earnings.
Gemfields Group Limited, the Guernsey-incorporated coloured gemstone producer co-founded by South African business executive Sean Gilbertson, has raised $32 million from the sale of higher-quality emeralds mined at its Kagem operation in Zambia.
The auction, held from August 25 to September 11, saw all 38 lots sold at an average price of $160.78 per carat.
Kagem, located in Zambia’s Copperbelt and 75 percent owned by Gemfields alongside the state-owned Industrial Development Corporation’s 25 percent, is the world’s largest emerald mine. Since Gemfields introduced its auction system in 2009, Kagem has generated $1.12 billion in cumulative revenues from 52 auctions.
The Imboo emerald
The September sale featured the “Imboo,” an 11,685-carat rough emerald named after the Bemba word for buffalo. It is the largest exceptional stone ever recovered at Kagem and drew strong bidding interest, underscoring continued appetite for rare gems despite mixed sentiment in the global gemstone market.
The auction marked a sharp recovery from November 2024, when Gemfields struggled to sell its top-quality emeralds and realised only $16.1 million.
In January, the company halted mining operations in response to an oversupply of Zambian emeralds and tariff uncertainty after the government reinstated a 15 percent export duty.
The levy was suspended in February, easing pressure on the sector. Following a modestly successful commercial-quality sale in April, Gemfields reopened two mining points in May, paving the way for the September auction.
A delicate recovery
Adrian Banks, Gemfields’ managing director of product and sales, called the result “a highly positive outcome,” crediting customer support and the quality of Kagem’s emeralds. Still, the market remains volatile. Analysts caution that oversupply, shifting tariff regimes, and geopolitical instability in Mozambique—home to Gemfields’ Montepuez ruby mine—pose ongoing risks to the company’s growth.
The proceeds from the September auction will be fully repatriated to Kagem, with royalties paid to the Zambian government on the full sales price. For Zambia, emerald mining provides vital foreign exchange earnings, while for Gemfields, the auction validated its supply-management strategy and offered evidence that the coloured gemstone market is stabilising.
Strategic positioning
Founded in 2007, Gemfields, the world’s leading miner and marketer of gemstones, is the operator and 75 percent owner of both the Kagem emerald mine in Zambia (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world).
Gemfields’ revenue slowed in 2024 to $212.9 million from $262 million in 2023, while operating expenses went down slightly from $178.9 million to $172 million.
Beyond Kagem, the group operates the Montepuez ruby mine in Mozambique and holds licences in Ethiopia and Madagascar. The auction platform it pioneered has become central to pricing transparency in the gemstone trade, enabling global buyers to participate in sealed-bid processes.
For now, the $32 million September auction restores momentum at Kagem after a turbulent year. Whether the recovery endures will depend on Gemfields’ ability to balance supply, navigate policy shifts in Zambia, and sustain international demand for emeralds.
