Zambian Tax Authority Clears Gemfields

RAPAPORT… The Zambian Revenue Authority (ZRA) has cleared Gemfields’ subsidiary Kagem Mining of all tax-evasion allegations following an investigation at its
emerald mine earlier this year.

The ZRA has advised Kagem that all matters under scrutiny
have been “suitably addressed,” Gemfields said last week. The tax authority
found no instances of wrongdoing or late payment by either party, the miner
noted.

During an unannounced visit in August, the ZRA raided the
miner’s Zambian asset, and served two search warrants on Kagem Mining and
Limpopo Polygraphs, a South African company that does periodic testing at the
Kagem emerald mine. During the visit, the ZRA confiscated documents and files
Kagem allegedly used to evade tax payments.

The ZRA has closed the investigation without levying any
penalties against either Kagem or Limpopo, Gemfields added.

Image: The Kagem emerald mine. (Gemfields)