The Gemfields group has announced the reopening of the Kagem emerald mine, one of the largest in the world. Closed for a year due to a pandemic, activity resumes at a time when the price of small green stones is starting to rise.
Emerald from the Kagem mine is expected to return to the trading market this week. They will currently be sold through virtual auctions for pandemic reasons, but certain lots could be physically available again in Bangkok, Dubai, Jaipur, Singapore and Tel Aviv, according to a statement from Gemfields, the owner of 75% of the Zambian deposit.
Kagem, a mine famous for its little emeralds
Kagem is one of the largest emerald mines in the world. It covers 41 km2 and supplies 25% of world production according to the figures from the group, and this is mainly due to its small deep green stone. A quality that can reach prices higher than diamonds and rubies, as opposed to larger stones, which are mainly mined in Colombia, the world’s leading producer.
The activity at this Zambian mine stopped with the decline in air traffic and travel. When traders were no longer able to travel, purchases that until then had mainly been through auctions fell face to face. Together with them, they led to the closure of several production sites, including Kagem, which had only been vacant for a year.
Emerald stores hidden jewels
Freezing mining activity has had an undeniable impact on the market, explains Emmanuel Piat, lapidary trader. But the effect has been limited thanks to existing stocks: between the moment a stone comes out of the ground and the moment it is presented to a customer, it can take between 6 months and 1 year. Reserve until then, but it was time for production to resume as explained by the merchant operating in Bangkok, Geneva and Paris.
In fact, with dwindling stocks, a shortage of the most sought-after stones for jewelry is beginning to be felt, resulting in rising emerald prices. This price is not set by a world price in the colored stone as elsewhere, explains Emmanuel Piat, the increase is a classic as soon as there is scarcity of the product.
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