The quality of Zambian emeralds in terms of colour, clarity and size, is such that they compare favourably with the best in the world.

In Zambia, deep green and valuable emeralds are currently sourced only from the NRERA. The fields at NRERA are believed to potentially represent the single largest source of easily mined, high quality emeralds in the world and have been known to produce approximately US$100 million worth of emeralds annually.

The Republic of Zambia is located in Southern Africa and has had three different consecutive democratically elected governments. It is a member of the Southern African Development Community (SADC) and its relatively stable political environment coupled with recent World Bank stabilisation programmes have significantly improved the economic outlook of the country. The country’s legal system is derived from English common law. The currency of Zambia is the Kwacha and is freely convertible. In 1995, Zambia enacted investor friendly mineral and mining legislation and dozens of international mining companies have since established mining and/or exploration activities in the country. Zambia has a significantly improved economic outlook. The copper and cobalt mining industries in Zambia have been revitalised through privatisation and the recent rise in copper prices. In addition, over US$750 million has been earmarked by mining companies for investment in the Zambian copper mining industry in the foreseeable future. For many years, Zambia has been an important source of gemstones for the world’s jewellery market.

The quality of the Zambian emerald (facet grade, fine colour) is almost on a par with the Colombian emerald. In Zambia, deep green and valuable emeralds are currently sourced only from the NRERA. The NRERA is a part of the famed copper belt where many mines are located. Emerald mines therefore benefit from the existing infrastructure.

A number of financial incentives have been created specifically to encourage investment in the Zambian mining industry. Zambian mining legislation contains incentives which include an exemption, on application by mining rights holders, from paying duty and VAT on importation and purchase of eligible machinery, equipment and supplies, a 100 per cent. Deduction of pre-production exploration costs within the first year of production and a five-year carry forward period for losses. The fields at NRERA are believed to potentially represent the single largest source of easily mined, high quality emeralds in the world and have been known to produce approximately US$100 million worth of emeralds annually.

The emerald gemstone mining sector is considered by the Company to be characterised by small artisanal production and to be relatively under capitalised compared with other extractive industries. It is also considered by the Board to be highly fragmented. The Board further considers the country of origin of an emerald to be a key factor in determining its value.

The market for rough emeralds was estimated to be worth approximately US$1,000 million per annum in 1990. The rough emerald trade is dominated by supply from Colombia (~50%), Zambia (~20%) with the balance from Brazil, Russia, Zimbabwe, Pakistan (~30%).

Zambia has produced $100m per annum of emeralds: up to 20% of world production.

Deep green and valuable emeralds currently come from two regions in the world:
- Ndola, Zambia
- Colombia

Zambian emeralds command premium prices due to their reputation for high quality.