Gemfields Nears Completion of Montepuez Ruby Mine Expansion Amid Challenges
Gemfields to Triple Ruby Output as $70M Montepuez Expansion Nears Completion
Gemfields, the UK-based leader in coloured gemstone mining, is nearing the final stages of a major expansion at its Montepuez ruby mine in Mozambique.
The $70 million project is expected to significantly increase production capacity, despite recent delays and operational challenges.
The company announced that construction of its second processing plant at Montepuez is now 95% complete.
Once commissioned, the facility will boost the mine’s ore processing capacity from 200 to 600 tonnes per hour—effectively tripling its throughput. Completion is now expected in September, one month later than originally planned.
The expansion has faced several setbacks, including technical difficulties, delays in securing permits, and civil unrest following recent elections in the region.
Ongoing illegal mining activity has also disrupted operations, adding to the complexity of the project.
Gemfields, recognized as the world’s largest producer of coloured gemstones, is working to strengthen its financial position after reporting a $100.8 million loss for 2024.
To support ongoing developments, the company has launched a $30 million rights issue aimed at improving liquidity and funding future projects.
Meanwhile, the company’s Kagem emerald mine in Zambia has resumed limited operations following a temporary suspension in April.
The halt was driven by an oversupply of emeralds in the market, largely due to increased output from a local competitor.
Although Kagem has restarted some activity, Gemfields noted that full-scale production may not resume for several months.
Despite current market and operational headwinds, Gemfields remains committed to long-term growth through strategic infrastructure investments and resilience initiatives across its gemstone portfolio.
