The construction of British coloured gemstones miner Gemfields Group Limited’s Montepuez ruby mine’s second processing plant (PP2) in Mozambique, designed to triple the mine’s ore processing capacity from 200tph to 600tph, is 95% complete and materially on budget.

While the plant is expected to produce its first rubies in August, its final completion is expected in September, including the tailings belt conveyor and decanter centrifuge. Final completion has been delayed as a result of, among other things, difficulties in obtaining the requisite work permits, particularly in relation to specialist electrical component installation, including the SCADA controls necessary to operate PP2, transport difficulties including in relation to a key transformer which had been damaged during transit, as well as security and operational issues arising from high levels of illegal miner incursions.

The Montepuez team and the principal contractor, Consulmet (Africa) Limited, had to navigate challenging circumstances experienced in the north of Mozambique during the 22 months since the project was first announced.

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In addition to its 75% ownership of Montepuez, Gemfields also holds 75% ownership in the Kagem emerald mine in Zambia, which has recommenced focused mining by re-opening two production points in the Chama pit with minimal waste mining. A measured further expansion of mining operations is expected from July and will be further shaped according to developing market conditions. A return to full-scale mining is not expected for some months.

With further controlling interests in various other gemstone mining and prospecting licences in Ethiopia and Madagascar, Gemfields has developed a proprietary grading system and an auction platform to provide a consistent supply of coloured gemstones to downstream markets.