(Alliance News) - Gemfields Group Ltd on Monday said its Kagem emerald mine in Kitwe, Zambia and Montepuez ruby mine in Mozambique are set to restart production in a phased manner during the month of March.
The London-based gemstones supplier said it expects mining operations to ramp up to their full-scale by the end of April. All but critical operations at both mines were suspended since late March and April 2020, respectively, in response to the Covid-19 pandemic.
Gemfields noted that its 2020 auction schedule was severely affected by the many travel, quarantine and gathering restrictions imposed around the world. For the year as a whole, aggregate auction revenue was USD22.4 million, down 89% from USD200 million generated from auctions in 2019.
However, due to ongoing restrictions, Gemfields will continue to use its interim auction model, which consists of mini-auctions where bids are placed online after multi-city, in-person viewings of the gemstones by customers. The next auction is expected to commence on March 15.
"After a grisly 2020 for Gemfields, there is palpable excitement across our worldwide team at the prospect of restarting production this month at our Kagem and MRM mines. With the world's largest emerald and ruby mines producing no gemstones for a year, we look forward to seeing the supply and demand picture play out in 2021. No ruby auctions have been held since December 2019 and there has been no new ruby supply produced by MRM since April 2020, meaning the forthcoming auctions represent an important offering for both mid-stream players and jewellers seeking to secure inventory," said Chief Executive Officer Sean Gilbertson.
Shares in Gemfields were up 1.6% at 7.75 pence on Monday in London, while its Johannesburg shares were down 1.3% at ZAR1.50.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Gemfields Grou. (GEM)