Shine comes off Gemfields as Zambia looks to ban auctions
9 April 2013 1:16am
PRECIOUS stones miner Gemfields yesterday said the Zambia government’s potential ban on overseas auctioning of gemstones could hurt revenue at its core emerald mine, sending its shares down as much as 27 per cent.
The Zambian Ministry of Mines, Energy and Water Development issued a directive on Friday that all auctioning of emeralds be held in Zambia as their sale in foreign markets contributes to capital flight.
“Gemfields has got around 20 per cent of the world’s [emerald] market, which comes from Zambia,” chief operating officer Dev Shetty said.
“Not allowing Gemfields to auction abroad is going to take us out of the competition with Brazil and Colombia, which holds 30 per cent each of the world’s supply of emeralds,” Shetty added.
The company, which named actress Mila Kunis as its brand ambassador earlier this year, mines mainly emeralds at its 75 per cent-owned Kagem mine, but also has interests in ruby and sapphire deposits.
Shares in the firm closed nearly 16 per cent lower at 25p.
In other news
The outbreak of bird flu in the US is leading to an unprecedented situation for companies reliant on eggs – [Read more]
Germany's finance ministry has denied reports it was considering offering Greece its own parallel currency. [Read more]
Chancellor George Osborne was given a boost today, as higher tax receipts helped shrink the deficit by more than [Read more]
Beleaguered spread-betting firm Plus500 today suspended trading in its shares on London's junior market, following [Read more]
The news that card and electronic transactions have overtaken cash as the UK’s preferred method of payment is [Read more]
Former secretary of state for communities and local government Eric Pickles is to be knighted, 10 Downing Street [Read more]
Network Rail engineers have destroyed the Abbey Wood station as part of the Crossrail development that is expected [Read more]
The Championship looks set to once again be named the fourth most-watched league in Europe, following a seven [Read more]
The Costa Coffee owner said Brittain was "the standout candidate from a very strong field". [Read more]
Sugary foods may be taxed to cover the costs of treating obesity, a government minister has said.
European governments must increase efforts to adopt structural reform if “lasting stability and prosperity” [Read more]
Accounting, finance and economics - choose to study any of these subjects anywhere and you'll be likely to land [Read more]
Badly-behaved bosses are a nightmare if you're the unfortunate employee who has to work for them - but they're [Read more]
Last night hundreds of people in Kent were woken by a 4.2 magnitude earthquake, which occurred just before 3am. [Read more]
Are the UK's new crop of MPs actually any good at social media? [Read more]
The retail industry is in a state of flux. Consumers and technology are driving fundamental changes. And now, [Read more]