Problems in Gems and Diamonds Mines

Gems News: Gemfields Faces Revenue Crisis Amid Mine Challenges

Gemfields has reported a steep financial downturn in the first half of 2025, highlighting the severe pressures facing the global gemstone industry. The miner revealed that sales had dropped by 47 percent, plunging to $64.2 million for the six months ending June 30. The group also moved from a profit of $13.7 million last year to a net loss of $24.6 million this year. This Gems News report reveals that the combination of temporary mine closures, shifting market dynamics, and government tariffs has destabilized one of the world’s most recognized gemstone producers.

Global miners face revenue slumps, funding struggles, and political pressures that
threaten the stability of the gems and diamonds trade.
Image Credit: StockShots

The company, which operates the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique, has faced multiple setbacks. Operations at Kagem were suspended late last year and only resumed in May 2025, while production at Montepuez yielded lower volumes of premium rubies. Political instability in Mozambique following contested elections further disrupted output. Additionally, Zambia’s sudden imposition of a 15 percent export duty on emeralds created another hurdle before eventually being resolved.

New Projects and Strategic Shifts

Despite the grim numbers, Gemfields insists it is preparing for a rebound. The company recently commissioned a new processing plant in Mozambique, which delivered its first batch of rubies earlier this month and is expected to become fully operational in October. The miner also announced the $50 million sale of its Fabergé luxury brand at the end of August, strengthening its liquidity and working capital. With these changes, Gemfields is signaling a strategy aimed at stabilizing operations and securing future growth.

CEO Sean Gilbertson described the first half as one of the most challenging in the company’s history but emphasized that shareholder backing and ongoing investment projects have positioned Gemfields on steadier ground heading into the final quarter of the year.

Burgundy Diamonds Seeks Urgent Funding

Meanwhile, Burgundy Diamond Mines, the owner of Canada’s Ekati mine, is also navigating financial turbulence. The company has applied for support from the Canada Enterprise Emergency Funding Corporation under its Large Enterprise Tariff Loan Scheme, which provides relief of up to CAD 150 million ($107.8 million). The miner revealed that it is simultaneously exploring other funding avenues as it works to secure the capital needed to keep operations afloat.

Burgundy pointed to weak global demand and crippling U.S. tariffs on diamonds as the primary causes of its struggle. Rough diamond prices have been hit especially hard by a 50 percent tariff on imports from India, the world’s largest diamond-cutting hub. This measure has dragged down global prices and severely cut into revenues. Until a financing deal is confirmed, Burgundy has suspended trading on the Australian Securities Exchange, underscoring the severity of its situation.

Industry Outlook Under Strain

The back-to-back crises of Gemfields and Burgundy highlight the fragility of the gems and diamond sectors at a time of slowing global demand, geopolitical instability, and tariff-driven trade disruptions. Both companies are banking on new strategies—whether through processing innovation or emergency financing—to ensure survival in an increasingly volatile market. For the wider industry, these developments raise pressing questions about sustainability, global policy impacts, and the long-term viability of high-value mineral extraction.

The resilience of these miners will depend on how quickly they can adapt to regulatory changes, political unrest, and shifting consumer markets. The coming months are likely to be decisive, with potential outcomes ranging from recovery to deeper crisis.

For the latest on problems brewing at the Gem and Diamond mines, keep on logging to Gems News.