Just In! Kagem Mining announces suspension of operations, cites market challenges

Kagem Mining Limited has announced a six-month suspension of mining operations at its Kagem mine in Lufwanyama District, Copperbelt Province, citing disruptions in the emerald market.

The company attributed the decision to an oversupply of Zambian emeralds sold at discounted prices during the latter half of 2024, further strained by conflicting auction dates among key Zambian emerald producers.

In a statement on Monday, Kagem Mining Head of Public Relations and Communications, Helena Choudhury, said these dynamics had destabilised the Zambian emerald market outlook, particularly for the first half of 2025.

“These market dynamics are evidenced by the disappointing auction results from Kagem’s last commercial and higher-quality auctions held in September and November, 2024 respectively, which gave rise to Kagem projecting a financial loss for the year to June 30, 2025,” Choudhury said.

Choudhury announced that the suspension of mining activities would begin on January 1, 2025, but clarified that ore processing would continue using the company’s upgraded plant.

“Kagem may recall all employees back to work prior to June 30, 2025, should market conditions recover adequately,” she stated.

To retain its workforce during the suspension, Kagem would continue to pay basic monthly salaries to affected employees in accordance with Zambian labour laws.

“The board and management of Kagem remain committed to weathering the current market conditions and resuming mining activities when the market has adequately recovered,” Choudhury added.

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