Kagem Mining Plc has declared a K38 million (about US$1.5 million) dividend to the Industrial Development Corporation (IDC) for its 25% shareholding, continuing the trend of dividends paid in previous years.
The announcement was made following the company’s Annual General Meeting at Pamodzi Hotel, where Kagem Board Chairperson Dr. Sixtus Mulenga handed over the cheque to IDC CEO Mr. Cornwell Muleya.
Dr. Mulenga emphasized that this year’s dividend payment exemplifies the implementation of the ‘G-Factor for Natural Resources’, a measure championed by Kagem’s parent company, Gemfields Group Limited. This measure illustrates the percentage of a mining company’s revenue paid to Zambia in primary and direct taxes and dividends. By adopting this approach, Kagem has transparently demonstrated its substantial contribution to the national treasury.
In the 2023 financial year, the Zambian government received K732 million (about USD 28.3 million) from Kagem’s revenue, translating to a ‘G-Factor for Natural Resources’ figure of 31%. Zambia is the first African country to publish ‘G-Factor for Natural Resources’ data for key mining companies, promoting transparency in the extractive sector. Supported by the Zambia Extractive Industry Transparency Initiative (ZEITI), this initiative has enhanced Zambia’s investment environment, attracting both local and international investors.
Dr. Mulenga encouraged other investors to adopt the ‘G-Factor for Natural Resources’ to improve the transparency and accountability of mining operations, ensuring that the wealth generated benefits all Zambians. “Adopting the ‘G-Factor for Natural Resources’ is not just good business practice; it is a commitment to the people of Zambia, ensuring that our natural wealth translates into tangible improvements in their lives,” he said.
Receiving the dividend cheque, Mr. Muleya praised Kagem’s consistent value delivery in the gemstone sector. “Kagem has been impressive and consistent, producing returns not only for the IDC but also for the people of Zambia,” he said.
“You have a been a pioneer in the mining sector here in Zambia, not only in terms of your contribution for the ‘G-Factor for Natural Resources’ but also in developing the gemstones industry in Zambia. You have built your position as number one in this field, making Zambia proud and by extension making the IDC proud because we are your partner and the shareholder on behalf of the Zambian people.”
