Gemfields Shares Contributions Of Mineral Resource Wealth Made To Host Nations Zambia & Mozambique In 2022

UK-based gemstone miner Gemfields reported updated figures regarding the sharing of natural resource wealth in the form of mineral royalties and corporation tax paid to the governments of host countries Zambia and Mozambique, where its gemstone mines are located.

The mining company said the ‘G-Factor for Natural Resources’ is a measure promoting greater transparency regarding the level of natural resource wealth shared with the host countries, whether from the mining, oil, gas, timber or fishing sectors.

In 2022, Gemfields paid mineral royalties of $18.6 million and corporation tax of $25.9 million in Mozambique (with a G-Factor of 27%). Last year, it paid $11.5 million of mineral royalties and $13.3 million of corporation tax in Zambia (with a G-Factor of 17%).

“Given the evolution of resource nationalism on the one hand, and increasing strategic competition by companies and states for access to resources on the other, it seems to us that a practical measure allowing more direct comparison of the sharing of natural resource wealth would assist greatly in identifying responsible custodians of host nations’ resources. We hope the G-Factor for Natural Resources will be voluntarily adopted by other companies, insisted upon by host governments and incorporated into projects such as EITI,” said Sean Gilbertson, Gemfields CEO.

Gemfields’ two key mining subsidiaries are the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique.

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