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Kagem Emeralds Limited raised only US$10.3 million from the recently auction in Lufwanyama, less than half the amount of previous auction in Lusaka last year.

Kagem chief executive officer, 6ean Gilbertson, attributed the downturn to uncertainty in the Indian gemstone trade driven by a tightening of financing availability in that country after a fraud allegedly committed by a major gem company.

Mr Gilbertson in a statement however said his company was happy that Zambian emeralds were the first gemstones in the world to make a remarkable breakthrough in emerald traceability.

“Of the 17 auction lots we offered for sale, nine featured the technology, with five of the nine being sold a clear indicator of the confidence already placed in this breakthrough,´ he said.

Mr Gilbertson .agem staff had now resumed work after last week¶s dispute involving some employees and representatives from the unions.

Revenue generated by an auction of high quality emeralds from the Kagem mine in Lufwanyama hit an eightyear low last week, with the company raising just US$10.3 million.

Only 10 of the 17 auction lots offered were sold at the auction, which attracted more than 35 leading international gemstone buyers, who bought just 56 per cent of the total carat weigh offered.

An ill-timed and illegal work stoppage at .agem, as reported in the media and coinciding with the auction in /usaka, may also have tainted the auction.