Gemcanton to up emerald production

By KENNEDY MUPESENI –
GEMCANTON Investments Limited, a joint venture with Grizzly Mining Limited, seeks to increase emerald production this year to 60,000 kilogrammes (kg) from 51,000 kg recorded in 2016.
Recently, Gemcanton acquired a 50 per cent stake in Grizzly to expand operations which has seen increased contributions to the treasury with employment levels shifting upwards from 340 to 802.
Gemcanton administration manager Carolyne Sampa said the transition from Grizzly to Gemcanton had seen expansion of the mining operations.
“This year we expect to increase emerald production to 60,000 kg from 51,000 kg recorded in 2016 as a result of huge investments the company has made in the last one year under the joint venture,” Ms Sampa said.
She said this in a brief when Mines and Mineral Development Minister Christopher Yaluma and his entourage visited the emerald mine in Lufwanyama this week.
Ms Sampa who could not give the actual capital injection amount said the partnership had resulted in the extension of mining life from about five years to 15 years adding that the company had also embarked on emerald plot acquisitions to expand production.
She said the partnership had also resulted in the company to start participating in emerald auctions.
Ms Sampa said in the last one year the company contributed more than K20 million directly and indirectly to the treasury.
“The company has paid K7 million mineral loyalty taxes, K853, 000 as corporate tax and K8.5 million Pay As You Earn (PAYE),” she said.
Ms Sampa said apart contributions to Government treasury, the company committed K2 million towards corporate social investments programmes such as annual road maintenance, medicine provision to local schools, schools requisites and teacher emoluments.
Mr Yaluma, who was impressed with the operations at the mine, said Government would continue putting emphasis on mineral diversification to insulate the country from economic shocks in times of low commodity prices.