FOR IMMEDIATE RELEASE
DECEMBER 23 2024
Temporary Suspension of Mining Operations at Kagem Due to Damaged Emerald Market
LUFWANYAMA, ZAMBIA: Kagem Mining Limited (“Kagem”) announces the temporary suspension of mining operations at Kagem.
This decision is a direct consequence of disturbed emerald market dynamics arising from an oversupply of Zambian emeralds at discounted prices during the second half of 2024, compounded by conflicting emerald auction dates between the key Zambian emerald producers and giving rise to a destabilised Zambian emerald market outlook for at least the first half of 2025.
These market dynamics are evidenced by the disappointing auction results from Kagem’s last commercial and higher-quality auctions held in September and November 2024 respectively and which gave rise to Kagem projecting a financial loss for the year to 30 June 2025.
Consequently, management has taken the difficult decision to suspend all mining activity for a period expected to be up to six (6) months, commencing on 1 January 2025. Kagem will continue however to process ore from its ore stockpile utilising the recently upgraded processing plant.
Kagem may recall all employees back to work prior to 30 June 2025 should market conditions recover adequately.
In order to retain its valued employees for the future recommencement of mining, Kagem will continue to pay the affected employees their usual monthly basic salaries while they are on forced leave pursuant to Zambian law.
The board and management of Kagem have stated their commitment to enduring the prevailing disturbed emerald market and to restarting mining when the market has adequately recovered.
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CONTACT
Enquiries
Gillian Langmead
Langmead & Baker Ltd
Tel: +260 979 060705
info@langmead.com
Head office
Helena Choudhury
Head of PR and Communications
Tel: +44 (0)207 518 3420 / +44 (0)7493 237598
helena.choudhury@gemfields.com
Albertina Namburete
PR Manager
Tel: +44 (0)783 325 7387
Albertina.namburete@gemfields.com
Kagem Mining
Irvine Mwitwa
Head of Corporate Affairs
irvine.mwitwa@gemfields.com
About Kagem Mining
Kagem Mining Ltd, based in Lufwanyama, is believed to be the world’s single largest producing emerald mine. Kagem is 75% owned by Gemfields, in a model partnership with the Zambian government.
Kagem aims to emulate the values of Gemfields and operate in a way that contributes positively to the national economy, while taking a leading role in modernising the coloured gemstone sector and building sustainable livelihoods for the communities around the mine. Kagem believes that coloured gemstones should be mined and marketed by championing three key values – transparency, legitimacy and integrity.
Gemfields is a world-leading responsible miner and marketer of coloured gemstones. In addition to Kagem, Gemfields is the operator and 75% owner of Montepuez Ruby Mining in Mozambique (at one of the most significant recently discovered ruby deposits in the world), as well as bulk sampling licences in Ethiopia, amongst others.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of coloured gemstones to the global jewellery market.
Fabergé – an iconic name with an exceptional heritage – is a member of the Gemfields Group. The beauty of Fabergé’s designs and craftsmanship, helps to raise consumer awareness of responsibly mined coloured gemstones.
As well as supplying a significant share of the world’s rough rubies and emeralds, Gemfields initiates activations to build desire for coloured gemstones: for example, collaborations with international jewellery brands and other creative partners. Often surprising, unexpected and unique, these collaborations are chosen to promote consumer awareness and increase the appeal of coloured gemstones, raising their profile, and, in turn, providing greater benefit to their place of origin in Africa.
Gemfields: Gemfields.com | Investors | Foundation | Instagram | Facebook | Twitter | YouTube
Fabergé: Fabergé.com | Instagram | Facebook | Twitter | YouTube
Kagem Mining: LinkedIn
Montepuez Ruby Mining: LinkedIn