20th Jun 2025 08:26
(Alliance News) - Gemfields Group Ltd on Friday said it has delayed the completion of its second ruby plant in Mozambique, citing work permit difficulties, transport hiccups, and illegal mining.
The London-based miner and marketer of coloured gemstones had indicated late in January it planned to complete the construction of Montepuez Ruby Mining Ltda's second processing plant by end of the first half of this year.
On Friday, Gemfields said it now expects this second facility to produce its first rubies during August, with final completion anticipated during September.
The second processing plant is designed to triple Montepuez Ruby Mining's ore processing capacity to 600 tonnes per hour from 200 tonnes per hour. It said the plant is 95% complete and is "materially" on budget.
Gemfields said the construction of Montepuez Ruby Mining's plant had encountered difficulties in obtaining the requisite work permits, experienced transport difficulties, and faced security and operational issues arising from high levels of illegal miner incursions.
Turning to its Zambian emerald mine Kagem Mining Ltd, Gemfields said it had re-opened two production points in the Chama pit with minimal waste mining.
"A measured further expansion of mining operations is expected from July 2025 and will be further shaped according to developing market conditions," Gemfields said.
Luxury brand Faberge continued to explore strategic options, following the completion of the equity rights issue, which required the process to be paused.
Gemfields also said it had completed its equity rights issue on Friday last week.
Assore International Holdings Ltd owns 32.85% stake in Gemfields following the rights offer. Rational Expectations (Pty) Ltd holds 15.58% interest and the concert party of which it is a part has 17.46%.
Shares in Gemfields were down 4.0% to 4.23p each on Friday morning in London and down 4.4% to ZAR1.09 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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