Gemfields Halts Ruby Mining in Mozambique Amid Political Unrest

Gemfields, a London-listed mining company and significant producer of coloured gemstones, has temporarily suspended operations at its Montepuez Ruby Mining (MRM) site in northern Mozambique.

The suspension follows violent unrest linked to the country’s disputed national election, during which over 200 individuals associated with illegal ruby mining attempted to invade the site.

Violent Incidents and Operational Impact

On Christmas Eve, groups set fire to community buildings near Gemfields’ MRM operation. Security forces, including Mozambican police and military, responded, resulting in two fatalities, according to the company.

In a related incident, a vocational training centre in the nearby village of Wikupuri, built in partnership with Mozambique’s Institute for Vocational Training and Labour Studies, was looted and damaged. For safety reasons, Gemfields temporarily relocated some of its employees to off-site locations.

Gemfields stated:

“Given the company’s priority remains the safety and security of its personnel, a number of people were temporarily relocated to off-site locations given the increased risk profile.”

“MRM maintained a sizable presence on site of more than 500 persons across employees, contractors and security components. While MRM’s operations were halted from 24 December, MRM intends to return to normal operations before the end of the year. The company continues to closely monitor the evolving situation and will provide further updates as necessary.”

Operations at the site have been paused since 24 December, with a phased return of staff beginning on 28 December. The company aims to resume full operations by the end of the year.

Context of Unrest

The unrest stems from Mozambique’s October election, where the ruling Frelimo party retained power amidst allegations of electoral fraud. Civil society monitors have reported at least 130 fatalities during related protests and clashes with security forces.

Implications for the Jewellery Industry

The Montepuez ruby mine is a key source of rubies globally. The suspension of operations highlights the risks political and social instability pose to gemstone mining.

This disruption may create short-term supply constraints for jewellers relying on gemstones from this region. Gemfields, which also owns the Kagem emerald mine in Zambia and the jeweller Fabergé, has advocated for transparency and sustainability in coloured gemstone sourcing.

These events highlight the need for jewellers to diversify supply chains and account for geopolitical risks when sourcing gemstones.