Gemfields to Resume Emerald Mining in Zambia

Wedoany.com Report-May 17, Gemfields, a miner of colored precious stones, has announced the resumption of open-pit mining at its Kagem emerald mine in Zambia, in which it holds a 75% stake. The decision ends a four-month suspension that began due to low market prices and cost-reduction efforts. Operations will restart in key areas of the Chama pit, located at the Kagem mine.

Emerald recovered at Kagem.

During the pause, Gemfields processed existing ore stockpiles, yielding fewer high-quality emeralds than expected. However, recent auctions performed better than anticipated, boosting confidence in the emerald market and prompting the company to resume mining. Gemfields plans to closely monitor market conditions before fully scaling up operations.

Following the announcement, Gemfields’ shares increased by up to 3.53%, reaching 4.4p in London, resulting in a market capitalization of ZAR 1.18 billion, equivalent to approximately $65 million. The Zambian government holds a 25% stake in the Kagem mine, making Zambia the world’s second-largest emerald producer after Colombia.

In addition to its Zambian operations, Gemfields owns a 75% stake in the Montepuez ruby mine in Mozambique and manages the luxury jewelry brand Fabergé. The company’s diversified portfolio supports its focus on colored gemstones and high-end jewelry markets.

Gemfields’ cautious approach to resuming operations reflects its commitment to aligning production with market demand. The stronger auction results signal improving conditions for emeralds, positioning the Kagem mine to contribute to Zambia’s gemstone industry while supporting Gemfields’ global operations.