Mozambique: Gemfields ruby mine “intends to invest in expansion”

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Mozambique: Gemfields ruby mine “intends to invest in expansion”

4:49 CAT | 26 Nov 2019

File photo: Folha de Maputo

Montepuez Ruby Mining (MRM), the leading investor in ruby extraction in Mozambique, has expansion plans on the horizon, chairman of the board Samora Machel Júnior told Lusa.

“MRM intends to invest in the expansion of the project’s washing plant and its mining capacity, which will mean greater employment opportunities and poverty alleviation” in surrounding communities, he told journalists visiting the mine in Cabo Delgado, northern Mozambique.

Of MRM’s 15 shafts in the 33,000 hectare concession, only five are being mined, these being the ones providing “what the market needs”. It is estimated that the mine, in one of the largest ruby deposits in the world, still has 16 years of productive life.

The 12 gemstone auctions held by the Gemfields company since it went into production in 2014 have already earned revenues of US$512 million, with the Mozambican state receiving a total of US$121 million in taxes.

ALSO READ: Mozambique: Ruby mining company teaches professions to communities after violent past

There are plans to expand activity, despite obstacles such as the volatility of ruby prices in the international market and the illegal mining to which many young people are attracted by intermediaries.

“We are not against artisanal mining. We believe that organised artisanal mining can be very beneficial. However, we note that there are many cases where mining is carried out unsafely, without protecting the environment and without paying taxes,” the MRM chairman of the board said.

In May, the company denounced what it called the “modern slavery” to which many young people are subjected to by international gemstone dealers in the company concession.

To lift them out of poverty and create opportunities, the company opened a vocational training centre on Monday, where it expects to train 2,100 people in various professions over the next seven years.

The Montepuez mine made international news in January this year when Gemfields agreed to pay a US$8.3 million out-of-court settlement to settle 273 claims of death, beatings and other human rights violations by private security personnel and police between 2011 and 2018.

The firm admitted the accidents, but did not accept responsibility for them.

“MRM has never violated human rights here, and at no time did Gemfields accept responsibility for these allegations, but for the benefit of all parties involved, it has opted for an agreement,” Samora Machel Junior said, pointing out that relations with the community are now “excellent”, and that the company has already made nearly US$3 million available for social responsibility projects.

Montepuez Ruby Mining operates in the province affected by armed violence that in two years has killed 300 people, but at some distance from Montepuez.

Armed groups supposedly springing from radicalised Muslim communities have launched attacks in coastal Cabo Delgado some 300 kilometres to the northeast, where natural gas projects are being developed.

But MRM remains attentive, Samora Junior says.

“If the situation spreads to this area, we will be disappointed. Not only is the company going to lose its investment, the community will be deprived of social growth. As a company, we are taking steps to prevent this from happening, but we have also been in contact with the government in order to have advance information,” Samora Machel said.

Created in 2012, MRM is owned 75% by Gemfields and 25% by Mozambican Mwiriti Limitada, which in turn is controlled by Raimundo Pachinuapa, a veteran general of the Mozambican Liberation Front (Frelimo), the party in power since the country’s independence.

Source: Lusa