The company confirmed that construction of its second processing plant at Montepuez is now 95% complete. Once operational, the $70 million facility will triple the mine's processing capacity, ramping up throughput from 200 to 600 tonnes of ore per hour. The new plant is now scheduled for completion in September, a month behind the original timeline.
Progress on the project has been hampered by multiple setbacks, including technical complications, permit delays, and post-election civil unrest in the region. Additionally, the site has faced persistent challenges from illegal mining activity, which has further complicated operations.
Gemfields, which holds the title of the world’s largest coloured gemstone producer, is seeking to stabilise its financial position after reporting a loss of $100.8 million for the year 2024. The company recently announced a $30 million rights issue to shore up its balance sheet and support ongoing projects.
In parallel, the group’s Kagem emerald mine in Zambia has resumed limited operations following a temporary shutdown in April. The suspension was prompted by an oversupply of emeralds in the market, largely attributed to increased output from a Zambian competitor. While activity at Kagem has restarted, the company noted that full-scale production is unlikely to resume for several more months.
Despite these headwinds, Gemfields remains focused on long-term growth through infrastructure expansion and market resilience strategies across its gemstone portfolio.
