Kagem Emerald Mine Lockdown Due to COVID-19

Kagem Mining has stopped operations at its emerald mine in Lufwanyama to protect employees during the coronavirus pandemic.

“The wellbeing of Kagem’s employees and communities is our top priority. As a result, all but critical operations at the Kagem Emerald Mine have been suspended for a maximum of one month from March 30, 2020, ”said Dr. Sixtus Mulenga, Board Chairman of Kagem.

Almost 1,000 people work at Kagem, which is operated by Gemfields in collaboration with the Zambian government through the Industrial Development Corporation, which owns 25% of the business.

This suspension is particularly important given the nature of the work at Kagem, which includes close physical contact, security procedures for biometric fingerprints, and weekly shift changes by production personnel.

Dr. Mulenga praised the government for its swift and determined measures to curb the spread of the disease in Zambia and promised that Kagem would do everything possible to ensure job security for employees. Employees will receive full salary for the month of the planned business interruption, he added.

He also gave words of hope to the people of Kagem, their families, local communities, and the entire nation, saying, “Zambia has an indomitable spirit, and we can pull ourselves together to address this threat by following the government’s leadership and ensure we all do our part to protect ourselves and our loved ones. “”

Sean Gilbertson, CEO of Kagem and Gemfields, said: “The turbulence caused by the coronavirus pandemic is one of the greatest challenges for many companies around the world. Kagem is no exception, and in 2020 and possibly beyond, significant adverse effects on operations, sales, and business are inevitable. “”

In 2019, 93% of Gemfields sales came from six gem auctions where customers could carefully check the gems before bidding. Due to the widespread travel restrictions, Gemfields cannot currently run auctions. Once travel restrictions are lifted, additional time is required before life and business return to a relatively “normal state”.

There is also a clear risk that travel restrictions will be extended or reintroduced when a second wave of viral infections occurs in second countries, Gemfields warned in a statement to the London Stock Exchange.

Due to the prevailing uncertainty, Gemfields cannot provide reliable information about when the next auctions can take place.