Gemfields will resume open-pit mining at its Kagem emerald deposit in Zambia following an uptick in market demand for premium stones.
The decision comes after a four-month suspension of mining activity, which began on January 1, 2025, as part of broader cost-cutting efforts amid a downturn in the colored-gemstone sector, the miner said Thursday. During the hiatus, the company processed material from existing stockpiles rather than extracting new ore.
While carat recoveries from the upgraded processing plant met expectations, the company produced a lower proportion of higher-quality emeralds compared to output from direct open-pit mining. It attributed this to the limitations of stockpiled material and noted the need to source more premium stones through targeted excavation.
Recent auction results have restored management’s confidence in the market, prompting the decision to recommence operations at two key areas within the Chama pit. The renewed mining activity would involve minimal waste removal and focus on recovering stones suited for higher-end sales, the company said.
Gemfields added it would continue to monitor market conditions before deciding on a full return to large-scale mining at the site, in which the company owns a 75% stake, with Zambia’s Industrial Development Corporation holding the remaining 25%.
Image: Rough emeralds. (Gemfields)
