Modern Mining April 2015

COUNTRY FOCUS – ZAMBIA

increasingly, Zambians are being trained to take over managerial roles. Ore reserves are sufficient to support mining operations in the Chama pit for at least 10 years but Kagem Mining has a very active mineral resource replenishment programme ongoing within its 41 km 2 licence area, with two bulk sampling projects currently underway. One is the Libwente South pit in the south-east of the licence area, where bulk sampling began in July last year, while the other is the Fibolele pit, in the north of the area. The programme at Libwente South is quite sizeable and will involve 1,9 Mt of rock handling to produce 41 000 tonnes of reaction zone ore at a targeted stripping ratio of 46:1. It is worth mentioning that Kagem has also tested the potential for underground opera- tions, starting several years ago on a trial underground mining project which has seen the driving of a short decline, nearly 1 000 m of lateral development and the establishment of 10 m x 10 m stopes. This project, while suc- cessful (and a first in the Zambian emerald mining industry), was put on hold last year, with Gemfields saying in its recent operational review that the “continued viability of open- pit operations, supported by robust emerald prices, has provided Kagem with the flexibility to extend the open-pit operations as required and has negated the need for accelerated under- ground operations at this time. The results of the pilot project will be incorporated into the ongoing study of potential larger-scale under- ground mining operations, along with the development of a detailed underground mine plan. A project manager with extensive experi- ence of underground mining in prevailing rock conditions within Zambia has been appointed to oversee this expansion plan.” Finally, what of the future for Kagem? According to Harebottle, the mine will remain crucial to Gemfields’ strategy of position- ing itself as the world’s leading supplier of

responsibly-sourced rare coloured gemstones. “Our record at Kagem speaks for itself,” he told Modern Mining . “We haven’t been afraid to invest heavily in terms of people, processes and equipment and we’re now reaping the benefits. Based on current performance and trends, I see continued growth at the operation for many years to come.” Photos by Arthur Tassell

The picking belt facility, which is part of the washing plant, where the emerald crystals are picked out by hand from a series of picking belts.

Gemfields – more than just emeralds Kagem is not Gemfields’ only mine. It also has a 50 % stake in Kariba Minerals in the south of Zambia, which it says is the world’s largest ame- thyst mine (accounting for 40 % of global production), and the Montepuez ruby deposit in Mozambique, which it claims is the world’s largest ruby mine. Additionally, it has a sapphire JV in Sri Lanka, exploration licences in Madagascar and is looking at the possibility of moving into Colombia. In keeping with its ‘mine and market’ strategy, in 2013 it acquired 100 % of Fabergé, the luxury jewellery business. In the year to 30 June 2014, Gemfields recorded revenues of US$160,1 million and EBITDA of US$59,3 million. Its performance has impressed the market and it was recently named as the winner in the‘Best Basic Resources Plc’ category at the 2015 UK Stock Market Awards. One of its major shareholders is Brian Gilbertson’s Pallinghurst Resources, which also has investments in PGM andmanganese mines in South Africa. 

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April 2015  MODERN MINING  37