Gemfields Delays Completion of Second Ruby Processing Plant in Mozambique
Gemfields has announced a delay in the final completion of the second processing plant (PP2) at its Montepuez Ruby Mine (MRM) in Mozambique.
The facility, designed to triple the mine’s ore processing capacity from 200 to 600 tonnes per hour, is now expected to be fully completed by September.
Although construction is 95% complete and remains largely on budget, certain critical components—specifically the tailings belt conveyor and decanter centrifuge—are still unfinished.
Despite this, Gemfields anticipates that PP2 will begin producing rubies in August using its core systems.
The delay has been attributed to several challenges, including difficulties securing the necessary work permits for specialized electrical installations.
These include supervisory control and data acquisition (SCADA) systems vital to plant operations. Additionally, transportation setbacks have affected progress, such as damage sustained this month to a key transformer during transit.
Of the approximately 300 trucks required for construction, 287 have successfully completed deliveries.
Further complications have arisen due to security and operational concerns, particularly a surge in illegal mining activity near the site.
Gemfields commended the resilience and efforts of both the MRM team and its principal contractor, Consulmet (Africa), for navigating the difficult environment in northern Mozambique since the project was launched 22 months ago.
Elsewhere, Gemfields has resumed focused mining at its 75%-owned Kagem emerald mine in Zambia. Two production points in the Chama pit have been reopened, with operations currently limited to minimal waste mining.
A measured expansion is planned for July, though a full-scale return is not anticipated for several months and will depend on evolving market conditions.
Meanwhile, Gemfields is reviewing strategic options for its luxury brand, Fabergé. The process had been paused during the recent rights issue, which has now concluded.
