Given the robust demand for gemstones, emerald miner, Grizzly Mining, one of the world’s largest producers of emeralds, recently acquired the Olympic licence area, which hosts an extension to the ore body adjacent to its current open pit mine. The Olympic licence is set to expand the life of mine by another 20+ years, says Abdoulaye Ndiaye, of Grizzly Mining. By Nelendhre Moodley.
Founded by current chair, Abdoulaye Ndiaye, in 1997, Grizzly Mining has been producing high-quality emeralds and beryl for the international gemstone market for over 25 years from its 100% owned flagship Grizzly mine in Lufwunyama region in the Copper-belt province of northern Zambia.
Zambia accounts for 70% of the global supply of emeralds, but also hosts deposits of semiprecious stones including aquamarine, amethyst, tourmaline, quartz, jasper and chalcedony.
Located in the Kafubu Belt, some 50 kms from Kitwe, Northern Zambia, the Grizzly Mine is an open pit operation, currently being mined to a depth of 65 m. The mine produces a combination of high, mid and low-grade emeralds and beryl for the international gemstone market.
Grizzly Mining mines a 1.4 km long open pit, consisting of five (now merged) pits – Chimpundu East and West, Camara, Demar, and Pilala, the original licence, totalling an area of 350 ha.
According to Ndiaye, the emeralds are found in the talc magnetite shist mineralisation (TMS) which is open W-E along strike and open at depth below the 65 m current open-pit. Future mining is planned to deepen the pit to 155 m to access the next layer of emerald mineralisation.
Meanwhile in line with meeting the growing demand for emeralds, the miner is busy drilling its latest acquisition to determine future expansion potential.
“The plan for the mid-term includes eastward pushbacks and excavation of the lower benches, ramping up to a rate of 1 million tonnes per month and mining to a projected pit bottom of 85 m.”
The mine produces 60 million carats a year, with quarterly auctions held both in-country and internationally.
In line with its expansion initiatives, the miner is also building a new washing plant, which will double annual production.
“A new wash plant is under construction – when complete, it will double processing capacity to 50 tph or 800 tonnes per day,” explains Ndiaye.
Demand for emeralds
At the latest international emerald auction held in Dubai in August 2023 where the company offered its latest mid-high grade rough emeralds from its flagship Grizzly emerald mine in Zambia, the company generated record sales of $48.63 million.
According to Ndiaye, some of the proceeds from the auction will be reinvested into Zambian operations as part of ongoing production expansion initiatives.
“Grizzly has been championing Zambian emeralds for over 25 years and I am pleased to report another successful emerald auction which has seen new records broken. The market for emeralds remains extremely strong and continues to grow in size each year with Zambian rough accounting for 70% of global supply. We continue to invest in our flagship Grizzly mine in Zambia and this auction will allow us to deliver on our ongoing expansion.”
Gemstone market
Emerald deposits are rarer than those of diamonds, owing to the unique chemical make-up circumstances of formation: magmatic pegmatite intrusions through a schist containing trace amounts of chromium and vanadium.
“Importantly, the presence of iron in Zambian emeralds makes them harder, meaning they need fewer enhancements or treatments.”
Colombia, Zambia, and Brazil are the major producers of emeralds globally.
Discussing the market fundamentals for emeralds, Ndiaye explains that the market is growing rapidly, in part because, unlike diamonds, emeralds appeal to both men and women – particularly in Asia.
“Historically, emerald production has been dominated by small producers which results in variable and inconsistent supply. This has changed in the last 10-20 years. Groups like Grizzly are able to bring a reliable supply of emeralds via best-in-class commercial operations. Increased supply allows the downstream cutting and polishing market to expand their own operations to meet the demand from end customers.”
90% of the world’s rough emeralds are cut and polished in India, the global centre for cutting and polishing. The cutting and polishing houses then sell into the polished gemstone market including to major well known luxury houses such as Graff, LVMH, Bulgari, etc.
Grizzly invests in community development
Grizzly Mining has committed to being a significant driving force in the local communities including, but not limited to, the following:
- Construction and maintenance of 50 km power line and road
- Annual donation of fertiliser and pesticide to six local chiefdoms
- Construction and sponsorship of three high schools and two primary schools, supporting over 900 students annually between the ages of 3 to 19.
- Ongoing sponsored literacy programme and school infrastructure construction
- Support of both local communities and government throughout Covid, providing 1100 oxygen cylinders to local clinics.
