Gemfields Kagem Emerald Mine has suspended the hosting of its next auctions which were originally scheduled for May and June 2020 due to prevailing levels of uncertainty arising from the COVID-19 pandemic.
The mine has also extended the suspension of operations for a period of one month to safeguard employees welfare during the COVID- 19 pandemic. Over 1,000 people are employed at Kagem which is currently operated by Gemfields in partnership with the Zambian government which owns 25% of the business through ZCCM IH.
According to information made available to the Zambian Business Times – ZBT by Kagem Mining Public Relations Consultant Gillian Langmead, Kagem and Gemfields Chief Executive Officer Sean Gilbertston said it is also conceivable that the subsequent emerald and ruby auctions originally scheduled for November and December 2020 may be cancelled altogether.
He added that the widespread travel restrictions arising from COVID – 19 mean that the company cannot presently host auctions and that once the travel restrictions are lifted additional time will be required before life and business returns to a relative normal.
He has disclosed that in 2019, 93% of Gemfields revenue was derived from six gemstone auctions at which clients were able to carefully inspect the gems before bidding, however due to this year’s uncertainties the company will not host auctions.
Gilberston further said the turmoil stemming from COVID – 19 represents one of the most serious challenges faced by many companies globally and Kagem is not an exception hence a significant detrimental impact on its operations, revenues and business is inevitable during 2020 and possibly beyond.
He has since warned that in a notice to the London Stock Exchange, there is a risk that travel restrictions may be extended or re-introduced should a second wave of virus infections take hold in key countries.
“We would also like to mention that the suspension of operations is crucial given the nature of the work at Kagem which involves close contact during physical searches, biometric fingerprint security procedures and weekly shift changes of production staff,” He added.
