Gemfields to resume emerald mining in Zambia

Coloured precious stones miner Gemfields (LON: GEM) (JSE: GML) will resume open-pit mining at its 75%-owned Kagem emerald mine in Zambia, ending a four-month pause triggered by weak market prices and cost-cutting measures.During the suspension, the company processed existing ore stockpiles, which produced fewer high-quality emeralds than anticipated. Stronger-than-expected results from recent auctions have renewed management’s confidence in in the emerald market, prompting a restart at key production zones in the Chama pit.Gemfields said it will continue to monitor the market before committing to full-scale operations. The company’s shares rose as much as 3.53% to 4.4p in London following the announcement, giving it a market capitalization of ZAR 1.18 billion (about $65 million). Zambia, the second-largest emerald producer globally after Colombia, holds a 25% stake in the Kagem mine through its government.Outside Zambia, Gemfields owns a 75% stake in the Montepuez ruby mine in Mozambique and also operates the luxury jewellery brand Fabergé.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com