Delays hit Gemfields ruby plant as Zambia mine reboots

[Redator]

Gemfields (LON: GEM) (JSE: GML) said on Friday that the commissioning of a second processing plant at its Montepuez ruby mine in Mozambique has been postponed to September due to logistical setbacks.

The coloured precious stones miner cited incomplete installation of the tailings belt conveyor and decanter centrifuge, along with delays in securing work permits, particularly for specialist electrical personnel. It also reported “security and operational issues” linked to a surge in illegal mining activity at the site.

Despite the delays, Gemfields expects the first rubies from the new plant to be produced in August, nearly 22 months after the project was first announced.

Gemfields also confirmed it has restarted mining at its 75%-owned Kagem emerald mine in Zambia. It has reopened two production points in the Chama pit, with a cautious ramp-up in operations set to begin in July, depending on market conditions.

It also said it continues evaluating options for Fabergé, the luxury jewellery brand it bought more than a decade ago, as part of broader cost-cutting efforts. The company did not disclose further details.

Gemfields shares rose nearly 4% after the update to 4.55 pence in mid-afternoon London trading. The stock remains down about 35% year-to-date, with a market capitalization of 2.14 billion South African rand ($119 million).