Gemfields Introduces ‘G-Factor for Natural Resources’ to Enhance Transparency
London-listed Gemfields has unveiled updated figures for its ‘G-Factor for Natural Resources’, designed to promote transparency in revenue sharing with host countries’ governments.
The measure, introduced in July 2021, aims to provide a clear indicator of the percentage of revenue allocated to host governments in primary and direct taxes across various sectors, including mining, oil, gas, timber, and fishing.
Gemfields’ recent report on the G-Factor computations for its key mining subsidiaries, the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique, reveals scores of 31% and 35% respectively for 2023.
These scores signify the share of natural resource wealth paid to the host country’s government, reflecting the efficiency of resource conversion into funds for the government.
Gemfields CEO Sean Gilbertson emphasizes the importance of such measures in facilitating responsible resource management, stating, “The ‘G-Factor for Natural Resources’ offers a straightforward means to evaluate the effectiveness of extractive companies in contributing to host nations’ wealth.”
To enhance comparability and alignment with regional practices, Gemfields has incorporated export duties and levies into the calculation process this year.
Gilbertson hopes that the adoption of the ‘G-Factor for Natural Resources’ will extend beyond Gemfields and become a standard practice embraced by other companies and endorsed by host governments, fostering transparency and accountability in the natural resource sector.
