JOHANNESBURG (miningweekly.com) – Gemfields has sold 5.6-million carats of low-grade emerald and beryl for a record $16.4-million at its most recent auction in Lusaka, Zambia.

The auction, which was the second offering of gems mined by the company at its Kagem emerald mine, in Zambia, saw 21 companies attending, with 20 companies placing at least one bid.

The miner achieved an overall average value of $3.32/ct, a 27% increase on the previous highest unit value achieved at any auction of predominantly lower-quality material.

Nineteen of the 21 lots offered were sold, bringing the company’s aggregate revenue from the fourteen auctions held since July 2009 to $224-million.

This followed a September auction of traded rough emeralds, comprising stones obtained by Gemfields in the open market from various sources, which yielded gross auction revenues of $8.5-million.

Taking into account the three auctions held this financial year, one being an auction of traded material and two of material mined at the Kagem mine, Gemfields' year-to-date auction revenues now stood at $56.4-million.

CEO Ian Harebottle said he was “delighted” that the auction further demonstrated Lusaka’s position as a key hub on the international emerald auction circuit.

“Gemfields has now completed three successful auctions in Zambia during the last eight months. We have again set two records for auctions of predominantly lower-quality material – the highest total revenue and the highest average per carat price,” he commented.

The Gemfields head added that the company’s emerald efforts remained focused on supporting the sustained increase in demand for Zambian emeralds as the globally favoured emeralds of choice, underpinned by its operational investments and international marketing efforts.

“The key is for Zambia to increasingly be recognised as a competitive, reliable and trusted source of ethically produced gemstones,” he said in a statement.