【Jaipur, Indi】Gemfields Halts Emerald Mining at Kagem

Jaipur. Colored gemstone miner Gemfields Group Limited has announced several strategic actions to cut costs and streamline its business in response to four major challenges. The company’s most recent emerald and ruby auction generated lower-than-expected revenue due to oversupply of Zambian emeralds at discounted prices, lower production of premium rubies, a weak luxury market, and civil unrest in Mozambique. To address these challenges, Gemfields is suspending mining for up to six months at its Kagem Mining Ltd emerald mine in Zambia. It is also halting non-essential spending and planned capital expenditure on its ruby development projects in Mozambique. Gemfields is putting its Nairoto Gold project up for sale and assessing strategic options for its owned luxury brand, Fabergé.

Gemfields is confident these measures are temporary and will help it navigate the current market conditions. The company is focusing on completing its second ruby processing plant at Montepuez Ruby Mining Limitada, which is expected to be completed by the end of the first half of 2025.

1. Instability in the emerald market due to oversupply of Zambian emeralds.
2. Lower production of high-quality rubies at Mozambique-based MRM.
3. Weakness in the gem-luxury market due to China’s economic situation and geopolitical turmoil.
4. Civil unrest in Mozambique, which has disrupted the supply chain.

– Mining operations at the Kagem mine in Zambia temporarily suspended.
– Reduction in non-essential spending and capital expenditure.
– Seeking potential buyers for the Nairoto Gold Project.
– Evaluating strategic options for the Fabergé brand.
– Completing the second ruby processing plant in Mozambique.