Maputo, Oct. 1, 2026 (Lusa) - The mining company Gemfields has recorded an impairment of $125.2 million (€106.8 million) on its ruby operation in Mozambique, after revising downwards its prospects for recovering high-quality stones at Montepuez.
According to Gemfields' half-yearly report, published on Thursday and seen by Lusa, the impairment reduced the value of Montepuez Ruby Mining (MRM), in Cabo Delgado, northern Mozambique, from $205.5 million (€175.3 million) to $80.3 million (€68.5 million).
The company explains that the decision stems primarily from a revision of estimates for the recovery of high-quality rubies – which fetch the highest prices at international auctions – and from delays in the new processing plant becoming fully operational.
«The recovery of high-quality rubies fell short of expectations,» Gemfields states in the document.
Despite the impairment, the company notes that MRM's total production of rubies and corundum (from the same mineral group) rose by 89% in the first half of the year, to 2.16 million carats, driven by higher volumes of processed ore.
Conversely, however, the production of high-quality rubies fell by 13%, from 34,823 to 30,408 carats.
Gemfields believes that the trend in the recovery of these rubies will be decisive in assessing the benefits of the investment made in expanding the operation.
In this context, the company is completing a second ore processing plant, representing an investment valued at $70 million (€59.7 million), of which $64.1 million (€54.7 million) has already been disbursed.
The infrastructure is expected to increase ore processing capacity from 200 to 600 tonnes per hour, tripling the mine's installed capacity.
According to the company, the new unit has entered an advanced stage of commissioning and has already reached its projected operational capacity during certain periods.
The report also highlights the challenges associated with illegal mining in the Montepuez concession, which covers an area of 349 square kilometres in Cabo Delgado province.
Gemfields reported more than 60,000 incursions by illegal miners between April and May this year, including days on which more than 1,000 entries were recorded in a single day.
«The damage caused included the destruction of infrastructure, equipment and water supply systems,» the company states.
The company adds that the incidents caused operational losses and necessitated a strengthening of security measures.
Nevertheless, it emphasises that the Mozambique armed forces continued to ensure the protection of the mining concession and that insurgent activity remained at an estimated distance of between 30 and 40 kilometres from the mining area.
MRM employed 1,901 workers at the end of June, of whom around 95% were Mozambican.
Owned 75% by Gemfields and 25% by the Mozambican company Mwiriti Limitada, MRM is described by the company as the world's largest producer of rubies, accounting for approximately half of the global supply of high-quality rubies.
PVJ/AYLS // AYLS
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