Gemfields Group, listed on both the JSE and AIM, has announced that its Zambian emerald mine, Kagem, is set to recommence focused open-pit mining operations aimed at recovering higher-quality gemstones. The mine is jointly owned by Gemfields (75%) and Zambia’s state-owned Industrial Development Corporation (IDC), which holds a 25% stake.
Earlier this year, Kagem temporarily halted mining activities from January 1 as part of cost-saving measures, choosing instead to process ore from its substantial stockpile using its newly upgraded plant. While this approach maintained expected carat output levels, it yielded fewer premium-grade emeralds compared to results typically achieved through direct mining.
Recent commercial-quality emerald auctions, including those held last month, have boosted management’s confidence in the strength of the emerald market. As a result, the company has decided to restart targeted mining at two key zones within the Chama pit, focusing on minimal waste extraction to increase the yield of premium gemstones for future high-quality auctions.
Gemfields noted that the decision to return to full-scale mining operations will be continually reviewed based on market trends and conditions.
