Gemfields has adopted the G-Factor for Natural Resources, a measure promoting greater transparency regarding the level of natural resource wealth shared with the governments of host countries.
It also said that the G-Factor for Natural Resources is intended to be an uncomplicated indicator of the percentage of a natural resource company’s revenue that is paid to the host country’s government in primary and direct taxes.
Furthermore, it is an indicator of the efficiency of natural resources companies in converting them into funds for the host government.
“Given the desire by governments to increase their participation in their country’s natural resources, a practical measure allowing a direct comparison of the sharing of natural resource wealth assists greatly in identifying responsible custodians of host nations’ resources,” said Gemfields chief executive Sean Gilbertson.
“The G-Factor for Natural Resources provides a simple ‘school score’ allowing observers to assess the relative efficiency of extractive companies in converting natural resources into wealth for host nations.”
He said that Gemfields anticipates other businesses voluntarily adopting the G-Factor for Natural Resources, host governments insisting on it, and incorporation into initiatives like the Extractive Industries Transparency Initiative.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
