Gemfields to restart mines after covid-triggered halts

Precious gemstones miner Gemfields (LON: GEM) (JSE: GML) said on Monday is ready to resume production at its two flagship mines in Africa, nearly a year after it had to halt operations in response to covid-19.
The company confirmed that both its Kagem emerald mine in Zambia and its Montepuez ruby mine in Mozambique would restart production “in a phased manner” in March, with operations ramping up to full scale by the end of April.
Gemfields, which returned to the London Stock Exchange’s market for juniors a year ago, suspended all but critical operations at Kagem and Montepuez on March 30 and April 22, respectively.
Employees on leave received a monthly wage despite not working and both mining operations have been able to avoid redundancies and retain their workforce, the company said.
“After a grisly 2020 for Gemfields, there is palpable excitement across our worldwide team at the prospect of restarting production this month at our Kagem and MRM mines,” chief executive Sean Gilbertson said in the statement.
Auctions interrupted
As well as shutting down production, Gemfields has not held a regular auction since February last year.
The company’s typical auction schedule consists of five to six events per year. Two of them feature mixed quality rubies and three to four are reserved for emeralds, both higher and commercial quality.
Gemfields managed to carry out a series of mini-auctions for emeralds during November and December. Despite the efforts, revenue from sales fell by 89% last year to $22.4 million. That compares to the roughly $200 million auctions brought in the year before.
This year, the miner plans to use an interim auction model, beginning on March 15, returning to its regular auction format in the fourth quarter.
Montepuez is the world’s richest known ruby mine, which generated revenue of almost $122 million in 2019.
The operation is located in the northern Cabo Delgado province, one of Mozambique’s poorest regions, home to many unemployed young people.
More News
Ukraine rejects US bid for 50% of rare earth minerals, FT says
Zelenskiy wants US and European security guarantees to be tied directly to any deal on the mineral reserves, FT reports.
February 16, 2025 | 08:53 am
Jubilee Metals begins processing high-grade copper to recoup production
The milestone follows Jubilee's recent agreement to secure 200,000 tonnes of material with a copper content of around 1.6% for its Roan facility.
February 16, 2025 | 08:25 am
Over 40 people killed in Mali mine collapse
The accident took place near the town of Kenieba in Mali's gold-rich Kayes region.
February 16, 2025 | 08:22 am
Trump starts energy dominance drive with White House council
The new National Energy Dominance Council will be led by Interior Secretary Doug Burgum.
February 15, 2025 | 01:58 pm
{{ commodity.name }}
{{ post.title }}
{{ post.excerpt }}
{{ post.date }}
Comments