Gemfields announced it has achieved the highest auction revenues to date from its latest emerald auction in London, raising $7.5 million. The group noted that demand for Zambian emeralds has increased, while operating costs at the flagship Kagem mine nearly halved.

According to a Gemfields press release, the auction saw buyers from India, Israel, Germany and the United States.

According to the miner, demand for Zambian emeralds, and especially Gemfields' Kagem emeralds, has seen a steady increase across all sectors over the past year.

The number of auction attendees increased from 23 in July 2009 to 37 in the latest auction with a further 30 having applied for the event.

Gemstone production at the Kagem mine increased to 6.1 million carats during the quarter. Total operating cost stood at $3.1 million, compared to $3 million for the previous quarter.

Kagem's un-audited total operating costs for the fiscal year ending 30 June 2010, totaled $12.4 million. Kagem's operating costs dropped 42% during 2010, with gemstone production down 38% year-on-year at 17.4 million carats, which the company said represented “real achieved economies of scale".

“We are pleased with the positive response we have received at the recent auction, giving a clear indication that demand for our emeralds is growing. All indications are that the market for emeralds is likely to continue to grow at a considerable pace, supported by strong Asian and worldwide demand, and into the foreseeable future,” Adrian Banks, Product Director at Gemfields, said.