LUSA 03/25/2025

Lusa - Business News - Mozambique: Ruby mine complains about illegal miners on its concession

Maputo, March 24, 2025 (Lusa) - 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 miners invaded its concession in Cabo Delgado.

In a statement, MRM said the latest of these cases occurred on 18 March, when its security team "was informed that a large group of illegal miners were in the concession" and asked a patrol team from the Armed Defence Forces of Mozambique (FADM) to intervene.

"Later, the FADM informed the MRM security team that an illegal miner had suffered a bullet wound to the lower limb when the crowd advanced aggressively against the patrol team," it added, noting that the injured man, aged 29, from Nampula province, had to be transported to hospital.

"This incident has been brought to the attention of the provincial and national authorities in the hope that more proactive measures will be taken against those who finance, facilitate and encourage the illegal trade in Mozambican rubies, harming Mozambique and its people through loss of life and deprivation of much-needed tax revenues from Mozambique's mineral resources," adds MRM.

The company stressed that it has developed "ongoing communication activities to warn of the dangers of illegal mining", namely "raising awareness in neighbouring communities", where illegal miners "often take temporary shelter", of the "dangers of illegal mining to dissuade 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.

PVJ/ADB // ADB.

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