News

Gemfields Postpones Second Processing Plant Launch in Mozambique, Restarts Operations in Zambia

Gemfields has announced a delay in the commissioning of its second processing plant at the Montepuez ruby mine in Mozambique, pushing the timeline to September due to logistical challenges.

diamond world news service

The company attributed the postponement to the incomplete installation of key equipment, including the tailings belt conveyor and decanter centrifuge. Additional delays in securing work permits, especially for specialised electrical technicians, have also hindered progress. Security concerns stemming from increased illegal mining activity at the site have further complicated operations.

Despite these setbacks, Gemfields expects to begin producing rubies from the new plant by August. The project, originally announced nearly two years ago, aims to enhance the mine’s overall processing capacity.

Separately, the miner has resumed activity at its Kagem emerald mine in Zambia, where it holds a 75% stake. Two production zones within the Chama pit have been reopened, with a gradual ramp-up in output planned for this month, subject to prevailing market dynamics.

Meanwhile, Gemfields continues to explore strategic options for Fabergé, the luxury brand it acquired over a decade ago, as part of a wider cost-optimisation effort. No further details have been disclosed.

Following the update, Gemfields’ shares rose nearly 4% to 4.55 pence during mid-afternoon trading in London. However, the stock remains down approximately 35% for the year, with a current market capitalisation of 2.14 billion South African rand (roughly $119 million).

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