Roundup: Buyers rue auctioning of emeralds in Zambia
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E-mail Xinhua, April 16, 2013
Buyers from India who are attending Zambia's local auctioning of rough emeralds have experienced concern over the inconvenience they have been caused to undergo not only by the long distance but illegal traders as well. The country's main emerald producer, Kagem Mining Limited, is holding its local auctioning of the green stone, which started on Monday in Lusaka, the Zambian capital following government's decision to ban auctioning outside the country.
Jagdish Tambi, the former president of Jewellers Association of India, told journalists Tuesday that the long distance involved in traveling to Zambia has inconvenienced them because they had to spend 25 hours travelling.
"We are obviously disappointed with this arrangement because of the distance. It was going to be better if it was done in Jaipur because that is where many of the customers are," he said.
He said apart from the long distance, illegal emerald dealers in Zambia have been harassing them so that they can get the stones from them instead of buying through the auction. "In a way we are very much disappointed. Local (illegal) traders have been pushing us to visit them. This is creating competition between the auction and the illegal traders. It would have been better if the auction was held in Singapore, China or Johannesburg, " he added.
Sean Gilbertson, the executive director of Zambia's main emerald producer, said 31 buyers were invited to participate in the auction but noted that seven have decided to stay away because of the distance.
While indicating that he was not disappointed with the turn out in which 24 buyers have showed up, the officials said it would have been a different story if the auction was conducted in Jaipur, India, the main center for emerald trade in the world.
"We are not dissatisfied with the attendance although some buyers have elected not to travel. Travel arrangement is one of the reasons they have cited," he said.
He said illegal traders have already invaded the auctioning as they have been spotted within the vicinity of the hotel where the auction is being conducted trying to entice the buyers.
According to him, the company was reluctant to hold the auction in Zambia because of illegal sell in emeralds which is undercutting the company's business, adding that 20 percent of the value of the company's emeralds is lost through theft. "This is why we don't want to be restricted to conduct out auction locally. 90 percent of customers are based in India," he added.
The auction will run until Friday while the revenue realized from the auction will be announced next Tuesday.
The emerald miner is 75 percent owned by London-listed Gemfields Group of Companies and 25 percent by the Zambian government.
In a statement obtained by Xinhua, the company's chief executive officer Ian Harebottle acknowledged that he expects the auction prices to be slightly lower than those obtained in India as a result of illicit gemstones on the periphery of the event. But the CEO expressed confidence that the auction would be a success and that Lusaka would be added to the circuit of international auctions held by Gemfields. Endi
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