After a strategic pause, gemstone miner Gemfields reopens open-pit operations at its flagship Kagem mine, signaling renewed confidence in the global emerald market.
A strategic pause with purpose
London-based gemstone mining company Gemfields has confirmed the resumption of open-pit mining at the Kagem emerald mine in Zambia. This decision follows a planned suspension that began on January 1, 2025, aimed at managing a temporary oversupply in the market and focusing efforts on processing existing ore stockpiles.
The pause was announced in December 2024, citing market saturation—particularly in the lower- and mid-grade segments—as a core reason. During this period, Gemfields directed its resources toward ore processing using its upgraded plant facilities. While the results in terms of carat output were aligned with expectations, the processed emeralds were generally of a lower quality compared to those typically recovered through direct mining.
Positive market signals spur resumption
Recent auction results offered a renewed sense of optimism. According to Gemfields, the encouraging sales performances served as a key motivator for resuming targeted mining operations. The company will restart activity at two specific production zones within the Chama pit, areas known for yielding high-quality stones.
This new phase of mining will be conducted with minimal waste removal, a strategy designed to optimize efficiency while maximizing premium recovery. The emeralds extracted will help supply future high-value auctions, a significant revenue stream for the company.
“We are encouraged by the recent stability we’re seeing in the emerald market,” a company spokesperson said. “This restart allows us to prepare for upcoming auctions while remaining cautious and responsive to evolving global demand.”
Flexible planning in a volatile landscape
While open-pit mining resumes, Gemfields emphasizes that it is not returning to full-scale operations just yet. The decision to ramp up further will depend on how the market develops in the coming months. By maintaining a flexible operational model, the company can respond quickly to changes in demand, without creating further oversupply.
The colored gemstone industry continues to face challenges from global economic uncertainty, fluctuating luxury consumer trends, and the aftermath of recent geopolitical tensions. By suspending and now cautiously resuming operations, Gemfields demonstrates a measured, long-term approach to balancing supply with sustainable growth.
The global importance of Kagem
Kagem remains a cornerstone in Gemfields’ portfolio and a significant player in the global emerald trade. Located in Zambia’s Copperbelt Province, the mine is co-owned by Gemfields (75%) and the Zambian government through the Industrial Development Corporation (25%). It is considered the world’s largest and most productive emerald mine.
Renowned for its vivid, rich green stones, Kagem emeralds are highly prized in both established and emerging jewelry markets. These gems continue to set benchmarks in quality, helping to define Zambia as a dominant force in the emerald trade.
Beyond business: Sustainability and social impact
In addition to its economic strategy, Gemfields continues to promote ethical and sustainable mining practices. The temporary mining suspension allowed the company to reduce environmental impact and focus on optimizing resources.
During the production pause, the company remained active in its social programs—supporting education, healthcare, and infrastructure initiatives for communities around Kagem. With mining now resumed in a focused capacity, Gemfields reinforces its commitment to responsible business that benefits both shareholders and local stakeholders.
With emerald prices showing signs of stabilization and auction results trending positively, the reopening of Kagem’s open-pit mine marks a hopeful chapter for Gemfields. The company’s calculated return to mining highlights the importance of flexibility and resilience in a complex, demand-sensitive industry. While the long-term outlook will depend on global economic trends and consumer appetite for high-end gemstones, Gemfields is clearly prepared to adapt. For now, the green hills of Zambia are once again open for mining, and the world will be watching as emeralds make their way from the earth to the auction block.
