Gemcanton Holdings auction rakes in US$15m pre-tax profit

Gemcanton Investments Holdings Ltd., Zambia’s leading emerald miner continues to grow in operational strength to become a company of choice, with the recent auctioning of processed and rough gemstones, raking in a whooping US$15 million profit before tax.

The Lufwanyama based-miner, discovered and established by Abdoulaye Ndiaye  in 1997 and formerly Grizzly Emerald Mine before changing its name to Gemcanton Investments Holdings Limited in June last year, attributes the company’s recent growth in operations and contributions to “bettering the lives of the local people through Corporate Social Responsibility” to various incentives being extended to the mining sector.

During the auction conducted from 15-18 August in Lusaka, a gross profit of US$15 million was realized from sales. A total of 36 out of 40 buyers visited the auction floor, mainly from Russia, India and Israel among others.

The sale received 28 bids in it the company’s fifth auction of the metal, raking in US$15 million. A total 16 percent will be remitted in tax to Zambia Revenue Authority.

The company’s increasing business growth has been spurred by the value addition it has continued championing in the production and polishing of stones using expertise from foreign and local expertise, with India being the main source of skilled labour to ensure quality services.

The value addition to gemston processing has chiefly been attributed to a myriad of incentives extended to mining companies in the sector including duty free machinery imports as well as other accessories needed for value addition to the precious metals, now taking over as Zambia’s lifeline from traditional copper mining.

“We are happy with Government in the provision of incentives which is helping in the marketing of the minerals… presently, we are now able to bring in machinery that is helping us in the polishing of the gemstones and this is adding value to our business.” Abdul Ba, the Company’s Chief executive Officer says in a post auction interview.

Among other machinery acquired, spurred by incentives include acquisition of dump tracks and excavators, among other equipment that is speeding up the mining of the precious metals. This has made the company enjoy relative dominance, spurred by the input from foreign expertise and advisory on the mining and processing of the product to enhance value.

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