Mozambique: Cabo Delgado ruby mine has grossed more than $1 billion in revenue since 2012

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Mozambique: Cabo Delgado ruby mine has grossed more than $1 billion in revenue since 2012

10:51 CAT | 29 Apr 2024

File photo: AIM

The mining of rubies at a facility run by MRM in Cabo Delgado, in northern Mozambique, has brought in the equivalent of almost €1 billion since 2012, according to figures released on Friday by the UK group Gemfields, which owns 75% of the company.

According to data up to last December 2023 from the “G Factor for Natural Resources” report, aimed at “promoting greater transparency regarding the level of natural resource wealth shared with the governments of host countries, whether from the mining, oil, gas, timber or fishing sectors”. Montepuez Rubi Mining (MRM) had a total revenue of 151.3 million dollars (141 million euros) in 2023.

Since Gemfields acquired 75% of MRM in February 2012, when mining began, with the auctioning of rubies beginning two years later, the mine has accumulated revenues of more than $1.055 billion (€982.7 million), paying the Mozambique state $257.4 million (€239.7 million) in royalties and taxes in the same period.

Last year, MRM paid the Mozambican state $53.2 million (€49.6 million), according to the same report.

READ: Mozambique: Gemfields paid 35% of its revenue to the state treasury in 2023

Montepuez.gemfields — *Image: Gemfields*

Montepuez Ruby Mining Limitada (MRM) is a Mozambique-based company that has the rights to mine the Montepuez ruby deposit, located in the north-east of Mozambique, in the province of Cabo Delgado, and which stretches over approximately 33,600 hectares.

“It is believed to be the most significant ruby deposit recently discovered in the world,” says Gemfields, which states that it has created more than 1,500 jobs locally, 95% of them for Mozambicans, and 65% from Cabo Delgado.

MRM is 75% owned by Gemfields and 25% by Mwiriti Limitada, a Mozambique-based company.

“MRM aims to emulate Gemfields’ values and operate in a way that contributes positively to the national economy, while taking a leading role in modernising the coloured gemstone sector and building sustainable livelihoods for the communities around the mine. MRM believes that coloured gemstones should be mined and marketed by upholding three key values – transparency, legitimacy and integrity,” reads the company statement.

Gemfields is described a world leader in the responsible mining and marketing of coloured gemstones and, in addition to MRM, operates and owns 75% of the Kagem mine in Zambia – touted as “the world’s largest emerald mine” – as well as bulk sampling licences in Ethiopia, among others.

“Gemfields’ responsibly mined gemstones are the preferred choice for pieces created by many world-renowned luxury houses and cutting-edge designers,” the statement concludes.

Source: Lusa