Gemfield’s Kagem Mining Limited is set to resume a targeted open-pit mining programme aimed at recovering higher volumes of premium-quality emeralds. The emerald mine in Zambia is 75% owned by Gemfields and 25% owned by the Government of the Republic of Zambia through the Industrial Development Corporation of Zambia.

Kagem had suspended all mining from 1 January 2025 to focus on processing ore from Kagem’s significant ore stockpile utilising the upgraded processing plant. Emerald production from the processing plant in 2025 so far, in terms of carats recovered, has been in-line with the company’s expectations, producing a lower proportion of higher-quality or premium emeralds than direct open-pit mining methods. Kagem’s recent auction results, including the encouraging commercial-quality auction results released on 30 April 2025, has increased management confidence in the current emerald market and the decision has therefore been taken to recommence mining of two key production points in the Chama pit, with minimal waste mining, to recover premium emeralds for Kagem’s future higher-quality auctions. The decision to recommence full scale mining will continue to be assessed as market conditions develop.

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Gemfields is a miner and marketer of coloured gemstones. The Kagem emerald mine in Zambia is believed to be the world’s single largest producing emerald mine. Gemfields also operates and owns the Montepuez ruby mine in Mozambique, one of the most significant recently discovered ruby deposits in the world. Gemfields also holds controlling interests in various other gemstone mining and prospecting licences in Zambia, Mozambique, Ethiopia and Madagascar.

Earlier this year, a new statutory instrument issued in Zambia revoked the 2019 suspension of the 15% export duty on precious gemstones. Gemfields said this would directly impact the Zambian emeralds mined by Kagem Mining Limited. This meant that a 15% export duty would apply on top of the existing 6% mineral royalty tax, meaning that Kagem faced an effective tax on revenues of 21%, in addition to corporation tax of 30%.

The Minister of Finance of Zambia, Dr Situmbeko Musokotwane, later suspended the 15% export duty on precious gemstones and metals by issuing Statutory Instrument No. 4 of 2025 on 18 February 2025 (the Customs and Excise (Precious Stones and Metals) (Export Duty) (Suspension) Order), with immediate effect.