Gemfields Grou. Share News (GEM)

Jan 30 (Reuters) - Emerald miner Gemfields Plc saidproduction in the second quarter rose 69 percent owing to highergrades recovered at its Kagem mine in Zambia.

The company produced 6.6 million carats in the quarter endedDec. 31 at Kagem, its only producing mine, up from 3.9 millioncarats last year.

Emerald grade for the quarter was 288 carats per tonne,compared with 222 carats per tonne a year earlier.

Gemfields said its ongoing large-scale waste movementprogramme at Kagem to open up new areas for future oreproduction was continuing according to plan.

"Management expects an overall increase in operatingefficiencies and performance as the stripping ratio stabilisesin the medium term, and as Kagem is able to mine both waste andore more efficiently," the company said in a statement.

Gemfields mainly mines emeralds at its Kagem mine in Zambia,but also has interests in ruby and sapphire deposits.

In November, it agreed to buy luxury jeweller Faberge, themaker of lavish Easter eggs for Russia's last tsar, in a dealvalued at $142 million.

Gemfields shares closed at 26.5 pence on Tuesday on theLondon Stock Exchange. They have risen about 18 percent in thepast year.