KAGEM MINING SUSPENDS OPERATIONS AMID DISTURBED EMERALD MARKET
Kagem Mining Limited has announced the temporary suspension of its mining operations at the Kagem emerald mine, effective from 1 January 2025.
This decision comes as a direct result of the disrupted dynamics in the emerald market, which have been triggered by an oversupply of Zambian emeralds at discounted prices during the latter half of 2024.
Additionally, conflicting emerald auction dates between key Zambian producers have led to a destabilized market outlook for the first half of 2025.
The company cited disappointing results from its recent auctions in September and November 2024, both of which saw lower-than-expected prices for commercial and higher-quality emeralds.
As part of the suspension, Kagem will halt all mining activities for up to six months but will continue to process ore from its stockpile using its upgraded processing plant. The company indicated that it may recall employees to work before the end of June 2025 if market conditions improve.
To support its workforce during this period, Kagem will continue to pay affected employees their usual monthly basic salaries while they are on forced leave, in accordance with Zambian labor laws.
The board and management of Kagem have emphasized their commitment to weathering the current market challenges and restarting mining operations once the market recovers sufficiently.
Diamond TV
Emarald is ideally more expensive than diamonds and Zambia is the second largest producer of Emeralds in the world. How come the impact of Emeralds on the Zambian economy has been negligible over the years, considering the above facts? Kagem needed to be audited on a serious note.