In an era demanding greater accountability and ethical practices across global industries, Gemfields, a world-leading supplier of responsibly sourced coloured gemstones, is reaffirming its pioneering commitment to transparency. The company has recently unveiled the latest figures for its proprietary G-Factor for Natural Resources initiative, an innovative benchmark designed to illuminate the flow of wealth from precious natural resources back to their countries of origin. These updated disclosures, reflecting comprehensive data through 31 December 2024, offer an exceptionally clear and detailed perspective on the substantial proportion of Gemfields’ gemstone revenues that are shared directly with host governments. This distribution occurs through various vital channels, including royalties, taxes, dividends, and other mandatory levies, providing a holistic view of economic contribution.
Launched with ambitious goals in 2021, the G-Factor was conceived to establish an unparalleled global standard for transparent disclosure within the often-complex natural resources sector. What began as a bold corporate reporting tool is now significantly expanding its influence, gaining impressive traction and recognition beyond Gemfields’ internal operations. A notable testament to its growing importance is the recent integration of this critical metric by the Zambian government into its ZEITI Online Fusion Portal. This strategic adoption by a sovereign nation dramatically enhances public visibility into the intricate economics of resource extraction, empowering citizens and stakeholders with unprecedented access to vital financial data and fostering a more informed national dialogue around mineral wealth management.
Montepuez Ruby Mine Sets the Pace for Revenue Sharing Excellence
Gemfields’ prestigious Montepuez Ruby Mine (MRM), nestled in the resource-rich province of Cabo Delgado, Mozambique, continues to stand as a shining exemplar of equitable revenue sharing within the global gemstone industry. Over the past decade, this prolific mine has consistently demonstrated outstanding performance, achieving an impressive average G-Factor of 25%. This robust figure highlights MRM’s consistent dedication to returning substantial value to the Mozambican state. For the calendar year 2024 alone, the mine reported an exceptional G-Factor of 24%, underscoring its remarkable financial strength and operational efficiency. This sustained high performance is a direct reflection of the enduring resilience and dynamism of the global ruby market, alongside MRM’s steadfast operational stability and its strategic position as a world-leading source of ethically mined rubies.
Speaking on the mine’s commendable achievements, Sean Gilbertson, CEO of Gemfields, remarked, “The Montepuez Ruby Mine continues to be a cornerstone of our operations and a significant contributor to Mozambique’s economy. Despite navigating what is often a complex local environment, MRM has consistently delivered a strong and reliable return to the Government of Mozambique. This success is not merely a testament to our operational prowess but critically, it underscores the inherent resilience and robust demand within the global ruby market, which has been absolutely critical to this positive outcome. We are proud of our team’s ability to create shared value in such a meaningful way.” The robust performance of MRM not only boosts the local economy but also sets a benchmark for responsible resource management in the region, providing vital funds for public services and infrastructure.
Kagem Emerald Mine Navigates Challenging Market Headwinds
In a stark contrast to the sterling performance of its ruby counterpart, the renowned Kagem emerald mine in Zambia experienced a notable downturn in its 2024 G-Factor. The mine reported a significantly lower figure of just 9% for the year, a substantial deviation from its long-term average. This result falls well below its robust 10-year average of 20%, signaling considerable market difficulties. This sharp decline directly reflects the challenging and unpredictable market environment that characterized the emerald sector throughout the second half of 2024. The confluence of global economic uncertainties, shifts in consumer demand, and supply chain disruptions severely impacted profitability, compelling Gemfields to make the difficult decision to temporarily suspend mining operations at Kagem in December as a strategic measure to manage costs and inventory effectively.
The temporary cessation of operations at Kagem was a necessary response to protect the long-term viability of the mine and ensure sustainable practices in the face of adverse market conditions. Fortunately, operations at Kagem responsibly resumed in May 2025, following a strategic reassessment of market dynamics and a careful optimization of production plans. With renewed market interest and improved operational efficiency, the company expresses cautious optimism and confidently expects the G-Factor for Kagem to demonstrate a significant recovery in the coming quarters. This anticipated rebound will be crucial for restoring the mine’s contribution to the Zambian economy and reinforcing its position as a global leader in emerald production.
Elaborating on the challenges faced, CEO Gilbertson added, “The adverse and volatile conditions prevalent in the Zambian emerald market profoundly eroded profitability at Kagem during the latter half of 2024. This market pressure directly impacted our capacity to generate and return significant value to the host country through our standard G-Factor contributions. The volatility we observed underscores the inherent cyclical nature of the gemstone market and the imperative for agile operational management. Our decision to temporarily suspend operations was not taken lightly, but it was a critical step to ensure the long-term health and sustainability of Kagem, enabling us to weather the storm and position ourselves for a stronger recovery. We remain fully committed to Kagem and our partners in Zambia, and we are working diligently to restore its strong performance.”
Driving the Global Transparency Agenda Forward in Natural Resources
Gemfields’ unwavering commitment to transparency, epitomized by the annual publication of its G-Factor, extends beyond mere corporate reporting; it serves as a powerful advocacy tool for greater clarity and accountability across the entire natural resources sector. By consistently publishing these detailed figures and actively fostering government collaboration and engagement, Gemfields is spearheading a movement to illuminate precisely how natural resource wealth translates into tangible benefits for local economies and national development. In a global landscape where the gemstone sector faces escalating scrutiny regarding sustainability, ethical sourcing, and fairness, the G-Factor is rapidly emerging as a practical, verifiable, and indispensable benchmark for responsible mining practices. It offers a clear, data-driven methodology for evaluating the economic contributions of mining operations, moving beyond anecdotal evidence to concrete, auditable percentages.
The initiative also plays a critical role in educating stakeholders—from local communities and government officials to international investors and consumers—about the true economic impact of gemstone mining. This enhanced understanding helps to dispel misinformation, build trust, and ensure that the wealth generated from these precious resources is indeed contributing to the betterment of host nations. By championing such a robust transparency standard, Gemfields not only reinforces its own reputation as an ethical leader but also actively encourages other industry players to adopt similar rigorous disclosure practices. This collective shift towards measurable accountability is vital for fostering a more sustainable and equitable future for all involved in the natural resources value chain.
In an industry that has, for too long, been characterized by inherent opacity and complex financial structures, Gemfields’ pioneering G-Factor approach signals a profound and transformative shift towards measurable accountability. This initiative represents a tangible move towards a future where every percentage point of revenue shared is clearly visible, making a monumental difference in global efforts towards ethical resource management, sustainable economic development, and empowering host nations to harness their natural wealth for the benefit of their people, one transparent disclosure at a time. It embodies a commitment to not just extract value, but to share it equitably and openly, fostering a new standard for corporate responsibility in the natural resources domain.