Gemfields (LON, JSE: GEM) has released its latest “G-Factor for Natural Resources’’ figures, revealing that over the the 2015–2024 period, its Kagem emerald mine in Zambia and Montepuez ruby mine in Mozambique returned 20% and 25% of revenue, respectively, to their host governments.
The “G-Factor” is a transparency tool introduced by Gemfields in 2021 to disclose the proportion of a company’s revenue paid to the host country in primary and direct taxes, as well as dividends where applicable. It aims to offer a simple, consistent metric across the mining sectors, helping to improve transparency in the gemstones market.
“[Our latest] figures highlight the contrasting contributions that a mining company can make to its host country depending on the prevailing operating and market conditions,” chief executive officer Sean Gilbertson said.
Montepuez returned 24% of its revenue to the Mozambican government last year, thanks to a strong ruby market despite challenges related to political unrest triggered by the October general elections, a persistent conflict in Cabo Delgado, and a deteriorating economic situation in the country.
The Kagem emerald mine in Zambia struggled with widely reported adverse market conditions in the second half of 2024. The mine posted losses, suspended operations by year-end, and saw its annual G-Factor drop sharply to just 9%.
Gemfields resumed limited mining at Kagem in May. “Should the improving market conditions for Zambian emeralds continue, Kagem’s G-Factor should again return to its long-term average of circa 19%,” Gilbertson notded.
Gemfields publishes its G-Factor annually as part of its commitment to greater transparency and accountability in the extraction industries.
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Gemfields (LON, JSE: GEM) has released its latest “G-Factor for Natural Resources’’ figures, revealing that over the the 2015–2024 period, its Kagem emerald mine in Zambia and Montepuez ruby mine in Mozambique returned 20% and 25% of revenue, respectively, to their host governments.
The “G-Factor” is a transparency tool introduced by Gemfields in 2021 to disclose the proportion of a company’s revenue paid to the host country in primary and direct taxes, as well as dividends where applicable. It aims to offer a simple, consistent metric across the mining sectors, helping to improve transparency in the gemstones market.
“[Our latest] figures highlight the contrasting contributions that a mining company can make to its host country depending on the prevailing operating and market conditions,” chief executive officer Sean Gilbertson said.
Montepuez returned 24% of its revenue to the Mozambican government last year, thanks to a strong ruby market despite challenges related to political unrest triggered by the October general elections, a persistent conflict in Cabo Delgado, and a deteriorating economic situation in the country.
The Kagem emerald mine in Zambia struggled with widely reported adverse market conditions in the second half of 2024. The mine posted losses, suspended operations by year-end, and saw its annual G-Factor drop sharply to just 9%.
Gemfields resumed limited mining at Kagem in May. “Should the improving market conditions for Zambian emeralds continue, Kagem’s G-Factor should again return to its long-term average of circa 19%,” Gilbertson notded.
Gemfields publishes its G-Factor annually as part of its commitment to greater transparency and accountability in the extraction industries.