Gemstone miner Gemfields says final completion of its subsidiary Montepuez Ruby Mine’s (MRM’s) second processing plant (PP2), in Mozambique, has been delayed to September.

The tailings belt conveyor and decanter centrifuge at the plant are yet to be completed.

Construction of PP2, designed to triple MRM’s ore processing capacity from 200 t/h to 600 t/h, is 95% complete and materially on budget.

PP2 is now expected to produce its first rubies during August from the plant’s core components.

Final completion has been delayed as a result of, among others, difficulties in obtaining the requisite work permits, particularly in relation to specialist electrical component installation, including the supervisory control and data acquisition controls necessary to operate PP2.

There were also transport difficulties, including in relation to a key transformer which was damaged this month during transit (about 287 trucks related to the construction – out of an estimated 300 – have successfully completed their deliveries to MRM).

Moreover, security and operational issues arose from, among others, high levels of illegal miner incursions.

Gemfields has highlighted the efforts of both the MRM team and the principal contractor, Consulmet (Africa), in positively navigating the very challenging circumstances experienced in the north of Mozambique during the 22 months since the project was first announced.

Meanwhile, the group’s 75%-owned Kagem emerald mine, in Zambia, has restarted focused mining by reopening two production points in the Chama pit with minimal waste mining, as announced in May.

A measured further expansion of mining operations is expected from July and will be further shaped according to developing market conditions.

A return to full-scale mining is not presently expected for some months.

The group is also continuing to explore strategic options in respect of its wholly-owned luxury brand Fabergé following the completion of the rights issue which required the process to be paused.