Kagem auction flops on Indian market uncertainities...

Revenue generated by an auction of high quality emeralds from the Kagem mine in Lufwanyama, located in Zambia’s mining and Industrial hub, the Copperbelt, hit an eight-year low in last weeks auction.

Kagem’s annual revenue projections have now definitely been thrown into tailspin with the company raising just US$10.3 million, less than half the amount it raised in its previous auction in Lusaka last year.

The company saw only 10 of the 17 auction lots offered being sold at the auction, which attracted more than 35 leading international gemstone buyers and who bought just 56 per cent of the total carat weight that was being offered.

Sean Gilbertson, the chief executive officer - CEO of gemfields, which owns kagem, in partnership with the state arm that hold government stake in companies, the Industrial development corporation - IDC of Zambia attributed to uncertainty in the Indian gem trade driven by a tightening of financing availability in India after the Nirav Modi fraud allegations.

Gilbertson said that The specific auction mix and quality composition of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of variations in mined production and market demand.

India remains the largest buyer and market for Zambian Gemstones Mined from the rich mineral vein than runs in the Copperbelt Province. Gemstones are also available in other parts of Zambia but official statistics are unavailable to quantify their economic significance.