Mozambique: Gemrock calls for government support to resume mining operations – AIM report

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Mozambique: Gemrock calls for government support to resume mining operations – AIM report

7:35 CAT | 28 Oct 2022

Photo: Gemrock

The company Gemrock, which holds a concession for ruby mining in the district of Montepuez, northern Mozambican province of Cabo Delgado, confirms a terrorist attack on the morning of 20 October, and calls for government support to resume its operations.

READ: Just in: Gemrock press release on attack at the site of operations in Montepuez – unabridged, with photos

Gemrock explains in press release that its operations were attacked by a group of heavily armed insurgents, who “in about 30 minutes, torched the heavy machinery equipment, vehicles, living accommodations and other key infrastructure at the Gemrock operations.

Thanks to Gemrock security team and Gardaworld they successfully managed to evacuate all their personnel from its site unharmed.

Gemrock praises the swift response of the Mozambican army who averted what could have been a much bigger loss to both life and assets, though no insurgents could be apprehended.

“Gemrock was forced to suspend its operations after this ghastly attacked since most of the heavy mining equipment required to run its operations has been charred by the insurgents”, reads the statement.

This attack not only affected Gemrock but also the neighbouring ruby mining companies Gemfields and Fura.

There is panic and chaos amongst all its team members comprising of expats from India, UK, South Africa etc. and the locals, affecting the lives of thousands of people connected directly or indirectly with the Montepuez ruby mining complex.

Gemrock explains that the situation has been further exacerbated by the fact that nearby villages which were a growing community and had one or more family member employed with Gemrock have fled their villages and are trying to resettle in safer areas and may never return to their homes.

This will not only impact Gemrock but would deprive these people of their steady income and make them go back to living a life which is neither in their interest and nor in the interest of the overall society at large.

While Gemrock is doing its best to work closely to find a best way to resume its operations, without critical Government support the entire Mozambique ruby industry remains at risk. Gemrock has invested over 2 billion meticais (31 million US dollars at the current exchange rate) in its Mozambique operations and was on the cusp of expanding its operations. However, these plans have now been on the back burner.

Gemrock to resume its operations and bring normalcy to the neighbouring villages, it is imminent that various Government departments proactively help and support.

The shareholders and management of Gemrock are quite concerned about the situation on the ground and would like to request the support of the Mozambican Government authorities to bring normalcy to the operations as soon as possible.

Source: AIM