MRM calls for proactive action against ‘financing, facilitating and encouraging illegal trade in Mozambican rubies’

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MRM calls for proactive action against ‘financing, facilitating and encouraging illegal trade in Mozambican rubies’

3:01 CAT | 24 Mar 2025

FILE - The Montepuez ruby deposit is located in the northeast of Mozambique within the Cabo Delgado Province, believed to be the most significant recently discovered ruby deposit in the world, covering an area of 34,966 hectares. [File photo: Gemfields]

Montepuez Ruby Mining (MRM), which operates Mozambique’s largest ruby mine, called on Monday for proactive measures against illegal activity after a large group of illegal miners invaded its concession in Cabo Delgado.

In a statement, MRM said the latest of these cases occurred on 18 March, when “Montepuez Ruby Mining (MRM)’s security team was informed that a large group of illegal miners were on the concession and had made contact with a Mozambique Armed Defence Forces (FADM) patrol team”.

“The FADM later advised MRM’s security team that an illegal miner had sustained a gunshot injury to the lower limb when the mob aggressively advanced towards the patrol team. ,” the statement adds.

The injured man, aged 29, is from Nampula province, district of Mogolovas and a resident in the village of Nanuni, in the Namanhumbir Administrative Post.

He was transported to the MRM clinic and afterwards to the Montepuez District Hospital for further medical assistance.

“This incident has been brought to the attention of the authorities at district, provincial and national levels in the hope that action will be taken more proactively against those who are financing, facilitating and encouraging the illegal trade in Mozambican rubies which hurts Mozambique and its people as a result of the loss of lives and the deprivation of much-needed tax revenue from Mozambique’s mineral resources.” adds MRM.

The company stressed that i “undertakes ongoing communication activities to warn of the hazards of illegal mining”, namely spreading awareness in nearby communities (where illegal miners often take temporary shelter), of the ” dangers of illegal mining, to deter individuals from putting themselves and others at risk”.

From 2012 to 2023, ruby mining at MRM’s mine in Cabo Delgado, in northern Mozambique, alone will bring in around €1 billion, according to figures previously released by Gemfields, which owns 75% of the company.

According to data up to December 2023 from the “G Factor for Natural Resources” report, which aims to promote “transparency” about the level of wealth from human resources shared by Gemfields “with the governments of host countries” from the mining, oil, gas, timber and fishing sectors, MRM had a total income of $151.3 million (€141 million) in 2023.

Since Gemfields acquired 75% of MRM – in February 2012, the year mining began, with ruby auctions starting two years later – the mine has accumulated revenues of over $1.055 billion (€982.7 million), paying the Mozambican state $257.4 million (€239.7 million) in the same period.

According to the same report, MRM, 75% owned by Gemfields and 25% by Mwiriti Limitada, a Mozambican company, paid the Mozambican state $53.2 million (€49.6 million) in royalties and taxes in 2023.

Meanwhile, global ruby production in Mozambique soared in 2024 to almost four million carats, an increase of 46% on the previous year, according to government figures previously reported by Lusa.

“In the group of precious and semi-precious stones, the biggest highlight goes to ruby, which in the period under review recorded an execution rate of 128% in relation to the annual plan and a growth rate of 46%,” reads the document with last year’s export results, consulted by Lusa.

Ruby production thus grew from 2,710,617.70 carats in 2023 to 3,946,506.90 in 2024, when the target set by the government was 3,080,895 carats last year.

Source: Lusa