Temporary Suspension of Mining Operations at Kagem Due to Damaged Emerald Market
Kagem Mining Limited (“Kagem”) announces the temporary suspension of mining operations at Kagem.
This decision is a direct consequence of disturbed emerald market dynamics arising from an oversupply of Zambian emeralds at discounted prices during the second half of 2024, compounded by conflicting emerald auction dates between the key Zambian emerald producers and giving rise to a destabilised Zambian emerald market outlook for at least the first half of 2025.
These market dynamics are evidenced by the disappointing auction results from Kagem’s last commercial and higher-quality auctions held in September and November 2024 respectively and which gave rise to Kagem projecting a financial loss for the year to 30 June 2025.
Consequently, management has taken the difficult decision to suspend all mining activity for a period expected to be up to six (6) months, commencing on 1 January 2025. Kagem will continue however to process ore from its ore stockpile utilising the recently upgraded processing plant.
Kagem may recall all employees back to work prior to 30 June 2025 should market conditions recover adequately.
In order to retain its valued employees for the future recommencement of mining, Kagem will continue to pay the affected employees their usual monthly basic salaries while they are on forced leave pursuant to Zambian law.
The board and management of Kagem have stated their commitment to enduring the prevailing disturbed emerald market and to restarting mining when the market has adequately recovered.
