Gemfields Resumes Emerald Mining as Markets Improve
May 11, 25
(IDEX Online) - Gemfields says it will resume some emerald mining operations at its Kagem nine, in Zambia, six months after announcing a halt to cut costs and streamline its business activities.
The company said management confidence in the market had increased following its latest auctions, and it would soon begin what it called "focused open-pit mining".
It said it would recommence full scale mining as and when conditions were right. It has been processing stockpiled ore in the interim.
"Kagem's recent auction results, including the encouraging commercial-quality auction results released on 30 April 2025, has increased management confidence in the current emerald market and the decision has therefore been taken to recommence mining of two key production points in the Chama pit, with minimal waste mining, to recover premium emeralds for Kagem's future higher-quality auctions," the UK-based company said in a statement.
Gemfields, the world's largest colored gemstone mine, announced a halt on mining at Kagem last December, in response to a slump in auction sales, weaker demand for gemstones generally, especially in China, and the oversupply of emeralds by a Zambian competitor.
Last month, the company reported a $100.8m loss for 2024, and announced a $30m a rights issue to help secure its future.
Kagem is 75 per cent owned by Gemfields and 25 per cent by the government of the Republic of Zambia.
Gemfields has also experienced problems at its Montepuez ruby mine, in Mozambique, where it was forced to suspend operations briefly due to civil unrest.
Pic, courtesy Gemfields, of rough emeralds.