Gemfields, the world’s leading colored gemstone miner, has announced it will resume focused open-pit emerald mining at its Kagem mine in Zambia, marking a significant shift after a six-month suspension of mining activities. This decision comes after a period of challenging market conditions, a strategic operational pause, and recent signs of recovery in the emerald market.

In December 2024, Gemfields halted all mining operations at Kagem, effective January 1, 2025, as part of broader cost-cutting and business streamlining measures. The suspension was a response to several converging factors:

A slump in auction sales and weaker global demand for gemstones, particularly in China.An oversupply of emeralds, partly due to increased output from a Zambian competitor.

The need to reduce operational costs and focus on processing existing ore stockpiles using an upgraded processing plant.

During the suspension, Kagem continued to process stockpiled ore. While this maintained some level of production, it yielded a lower proportion of premium-quality emeralds compared to direct open-pit mining.

The decision to restart mining was prompted by improved market sentiment following encouraging results from Gemfields’ latest commercial-quality emerald auction in April 2025. The auction generated $16.4 million in revenue, with 89% of lots sold at an average price of $6.87 per carat, signaling renewed demand and stability in the market. These results have increased management’s confidence in the outlook for higher-quality emeralds.

Initially, Gemfields will resume mining at two key production points in the Chama pit at Kagem, employing minimal waste mining to optimize the recovery of premium emeralds for future high-value auctions. The company describes this as “focused open-pit mining,” emphasizing a targeted approach rather than a full-scale restart.

Gemfields has stated that a return to full-scale mining will be considered as market conditions continue to improve. In the meantime, the company will monitor the market closely and adjust its operations accordingly.

Gemfields’ decision to resume focused mining at Kagem reflects cautious optimism after a period of market turbulence and operational retrenchment. The move is underpinned by improved auction results and a strategic emphasis on premium emerald recovery, but the company remains vigilant, with a full-scale restart contingent on sustained market recovery. This development not only signals a potential turnaround for Gemfields but also highlights the broader challenges and dynamics facing the colored gemstone industry today.