KARIBA MINERALS LIMITED AND KARIBA AMETHYST MARKETING LIMITED

The Company

The company was formed in 1987 as a joint venture operation between the Zambian Government and Lonrho Zambia Limited. As such, each party holds 50% of the shares in the company, and consequently the company is controlled by a board of directors comprising of members from both parties. The Government provides the chairman, while Lonrho provides the Chief Executive. The whole company falls under the Reserved Minerals Group of trading companies, and the Kariba Mineral's trading results form part of Reserved Minerals Group's annual financial trading return. Kariba Amethyst Marketing Limited is the marketing subsidiary of Kariba Minerals Limited, and would cease to exist if that company operated as an independent entity. The company is involved in the mining and marketing of amethyst gemstones.

Operations and Production

Amethyst gemstones are mined from the company owned mine situated South of Kalomo, close to Lake Kariba. The company has a five year mining license, which expires in September 1995. The current mine has estimated reserves for five years. However, the area has large amounts of known unexploited deposits of amethyst, which could last an additional 15-20 years. The mine operates with adequate equipment which includes two bulldozers, power screens and generators. All the equipment is in fair condition, and the mine ensures that they have adequate stockpiles of minerals should a breakdown occur. The mine produces approximately 30 tonnes per year, of varied quality gems. Amethyst production has increased over the last three years, and all production is sold.

The mined minerals are roughly knocked and graded at the mine, before being transported to Lusaka. At Lusaka, the gems are carefully graded and re-knocked further. Knocking is the process of chipping away the clear quartz from the deep purple of the amethyst. Amethyst attains a higher value when the gem is of a deeper and clearer purple. Once the stones have been knocked and graded, they are passed onto the marketing division, Kariba Amethyst Marketing Limited.

Zambia has the reputation for providing high quality amethyst, and as such attracts attention and buyers throughout the world. All grades of amethyst are sold, with South East Asia purchasing the major proportion of all grades of gems. The high quality gems attract buyers from Germany, USA and Austria. A large number of these gems eventually end up in South East Asia. Amethyst demand fluctuates, as the gem's demand depends on the current fashion trends in costume jewelry. The company has 60-70% share of the local market production and sales, and competes favourably against Brazil, their major international competitor.

Key Strenghths

Financial Highlights

Profit and Loss Account for the year ending 31st March 2004.

 (Figures in K'000)
'
Turnover
K 8,918 million
Profit & Loss
K 364 million
Capital employed:
K2,708 million
Employees:
340 as at 31st August, 2004

Approved mode of privatisation Government approved the sale of some of the shares to the private sector and retain some shares in trust for Zambians.
Privatisation timetable/process Kariba Minerals was re advertised and tender closed in October 2000 and five bids were received. However, the proceedings on the sale of KML were stopped until further notice. On 25th July 2002, the ZPA Board rescinded the sale to the preferred bidder. The Agency is awaiting further guidelines. Meanwhile, Lonrho sold its shareholding in KML to Gemhouse in August 2002 and the Ministry of Mines consented to the transfer of Lonrho's shares to Gemhouse in December 2003.
For Further Details, Contact:
The Chief Executive,
Zambia Privatisation Agency
Telephone numbers 260-1223859, 227735, 222858, 220177, 227823, 227791, 227846 & 227851
Fax 260-1-225270, 225390

Mail to: fmumba@zpa.org.zm

Back to Zambia Privatisation Agency (Zpa) Home Page | Back to Introduction