Kagem Mining Suspends Operations Amid Disturbed Emerald Market
Kagem Mining Limited has announced a temporary suspension of mining operations due to disrupted emerald market dynamics. The decision follows an oversupply of discounted Zambian emeralds and conflicting auction dates, destabilizing the market outlook through mid-2025.
The company reported disappointing results from its September and November 2024 auctions, projecting a financial loss for the fiscal year ending June 2025. To mitigate losses, mining activities will pause for up to six months, beginning January 1, 2025. During this period, Kagem will process existing ore stockpiles using its upgraded plant.
Despite the suspension, Kagem will retain its workforce by paying basic salaries under Zambian labor laws. Management expressed its commitment to resuming operations once market conditions improve, potentially recalling employees before June 2025.
Kagem remains steadfast in weathering the challenging market conditions and anticipates a recovery to revive mining activities.
