(Ecofin Agency) - Gemfields, a leading producer of rubies in Mozambique and emeralds in Zambia, introduced a calculation method in 2021 to assess its contribution to public revenues in both countries. This method considers mining royalties and dividends.

On April 24th, Gemfields announced it paid Zambia and Mozambique respectively $28.3 million and $53.2 million. These represent 31% and 35% of the company's revenues that year from the Kagem emerald mine (Zambia) and the Montepuez ruby mine (Mozambique).

Over the past decade, Gemfields reports paying $257.4 million in Mozambique and $167.5 million in Zambia.

Called "G Factor for Natural Resources," this method includes mining royalties, corporate taxes, dividends to state shareholders, and export taxes. While it doesn't account for job creation or subcontracting with local suppliers, it offers citizens a clearer understanding of revenues paid to their governments.

"Given governments' desire to increase their share of their country's natural resources, a practical measure allowing a direct comparison of the sharing of natural resource wealth greatly helps identify resource managers in host countries," explained Sean Gilbertson (pictured), Gemfields CEO, advocating for the use of this method in reports by organizations such as the EITI.