By SOLWEZI TODAY WRITER–
KAGEM has scored a first with its fourth auction of emeralds in Lusaka in February.
The auction follows on the heels of three other auctions which were successfully held in 2013.
Minister of   Mines, Energy and Water Development Christopher Yaluma, who officiated at the fourth auction held from February 21 to 25 this year, aptly described Kagem as the flag-bearer of the Zambian emerald industry.
Mr Yaluma stated that the potential of emeralds to contribute to the development of Zambia has not been fully realised over the years because of the manner in which the resource is exploited.
Emerald mining has been done on a small scale with no defined marketing system. The minister observed that this is where Kagem has made a difference and is setting fresh trends in the industry.
“Kagem has demonstrated that mining of emeralds at a large scale, and having a transparent and defined marketing system, is the way to go.
“Government has plans to reorganise both the mining and marketing of emeralds to realise the potential of the sub-sector and contribute to the economic development of Zambia,” says Yaluma.
He says Government’s desire is to see all producers auction their emeralds within the country.
With the four successful auctions it has so far held, Kagem has etched an indelible mark in the emerald sector.
This certainly bodes well with Government’s vision, according to Mr Yaluma, to see Zambia play a key role in the global emerald sector, with the country’s capital becoming the hub.
Kagem has helped take the success story on local emerald auctioning to the global stage.
This is evidenced by the many buyers from different countries who have continued to express interest in the local auctions.
William Nyirenda, the Kagem Mining Limited Board Chairperson, is a happy man.
“Our emeralds continue to attract a worldwide market and this week’s auction is no exception.
“We have buyers here from across the globe most of whom are eminent dealers in not only emeralds but also in a variety of other gemstones,” says Mr Nyirenda.
He is satisfied that Kagem Mining production figures have continued to improve, and with them the profitability of the company.
Against a backdrop of hard work and visionary leadership, Kagem recently declared a respectable and historical dividend to the shareholders namely, Gemfields Plc and the Zambian Government.
“Respectable and historical because this was the first time a dividend was declared and it was a decent return on investment.
“Today, we are pleased to announce that Kagem Mining Limited will spend almost US$1 million on a social investment programme that includes the upgrading of a clinic to hospital status and the construction of a new secondary school in Lufwanyama District,” Mr Nyirenda revealed.
The company, recognising the importance of partnering with local communities, is pumping colossal amounts of money into its social investment programme.
Kagem has taken invaluable steps to protect the environment, safeguarding the interests of communities in its operational area.
The company, which is pioneering the concept of ethical gemstone mining, is also stepping up its tree planting initiative, investing heavily in the back-filling mine excavation works in order to protect the environment.
Kagem Mining is committed to working with its stakeholders to improve the livelihoods of people in the communities in which it operates.
Education and health are key components of that vision, along with the conservation of the company’s shared environment.
Under the two-year social investment scheme, which was approved by the Kagem Board in December 2013, the company will fund and construct a four-ward building at Nkana Clinic and three nurses’ accommodation blocks, turning the facility into a mini-hospital at a cost of approximately $250,000.
Kagem has also pledged to construct, at approximately $700,000, a complete new higher secondary school at Chapula and provide sports equipment to the existing primary school there.
According to Mr Nyirenda, the company’s motivation is to benefit the people of Lufwanyama and by extension improve the well-being of its workers, their families and the wider community in which the emerald mine is located.
The extension of the clinic will give people improved access to more advanced healthcare facilities at local level, lessening the need to travel farther afield for more complicated medical attention.
It will provide dedicated male, female and children wards as well as a maternity unit, and will allow 24-hour patient care.
Kagem’s support for education has numerous benefits. It develops literacy levels, and enhances productivity and good health.
The company aims to improve the learning environment for both pupils and teaching staff, thus also providing a pool of educated workers for future employment at the mine.
Kagem’s approach to its community development projects is to ensure maximum impact through a long-term sustainable strategy which accommodates the needs of local people. The firm works hand-in-hand with community leaders, central and local government, non-governmental organisations and local residents.
The focus is on alleviating poverty and is aligned with Government policies, objectives and targets as well as the Millennium Development Goals and Vision 2030.
To date Kagem has spent K2.8 million on corporate social responsibility projects, including the provision of a Zesco power line, new buildings at Chapula Basic School, teachers’ accommodation at Kapila Community School, improvements to chiefs – Nkana and Lumpuma’s palaces, the Nkana Clinic, and the Blessings and Green Farm projects.
The company has also paid for road upgrading and maintenance.
On the environmental side, Kagem has initiated a zero-carbon project to offset the carbon generated by its operations globally.
A tree nursery has been established, tending some 100,000 tree saplings, and Kagem is working closely with the Forestry Department under the Ministry of Lands, Natural Resources and Environmental Protection.
Maintaining the environment is an on-going process for Kagem and its mining operations adopt an in-pit dumping method by which excavated rock and soil are used to back-fill previously mined sites, ensuring the mine’s footprint and environmental impact are minimised.
The ethical approach is all part of Kagem’s strategy to be at the forefront of developing the international market for Zambian emeralds by investing in exploration, mining, sales and marketing in order to develop a competitive, reliable and trusted source of ethically produced gemstones that buyers can rely on.
Kagem is obviously managing to meet its set targets because it believes in cooperating with all the key partners.
“Kagem is able to do all these programmes  because of the support we continue to enjoy from the shareholders, the board, management and staff, the unions, the community in which we operate and most importantly, you, our customers.
“We, therefore, look forward to your making reasonable bids. The resources you give to us through this auction process benefits not only the shareholders but as you will have observed, the benefits also accrue to the community of Lufwanyama District where our mine is situated,” added Mr Nyirenda.
With such a vision, Kagem is demonstrating that there is value in working with local communities and looking beyond profits.-Feature courtest of SUMA SYSTEMS.