For centuries, ruby deposit in Burma has been important to fine quality ruby supply for the trade. Rubies from Thailand and Cambodia also have been known historically. These years, Mozambique ruby stated its rapid domination in the market especially in Bangkok and Sri Lanka with value appeal and good gem quality, released in a recent research by GIA’s Rubies From The Montepuez Area (Mozambique).
The world’s leading coloured gemstone mining and marketing company Gemfields plc acquired the Montepuez mine in Mozambique and started production in 2012. In the partnership with Mwiriti Limitada in Mozambique, Gemfields started the initial interaction with the people involved and the appropriate due diligence. Later entering into joint venture agreement with Mwiriti, the company began to invest requisite financial and intellectual capital to bring mining project to fruition.
Until now the company holds a 75-percent interest in Montepuez ruby deposit in Mozambique. The mining covers an area of 340 square kilometres, said the company. It has changed the operational area from greenfield with no previous mining, geological, operational or infrastructural history into a community including schools, regional trading market, a base camp for the employees, which continues to scale up progressively, according to Ian Harebottle, CEO of Gemfields.
Demand & quality
From 12 to 17 June 2014, Gemfields held its inaugural auction of rough ruby and corundum in Singapore, which resulted a total auction revenue of US$ 33.5 million and an average price of US$18.43 per carat. The company also put the world’s first rough ruby grading system into application in the auction. “We are excited to notice that our traditionally emerald-focused customers were able to interact with our newer and more ruby-focused customers. The interaction clearly motivated all concerned staff to strive for higher level of excellence,” said Ian Harebottle in an interview with Hong Kong Jewellery.
The report Gemfields Inaugural Rough Ruby Auction in Singapore by Vincent Pardieu and Andrew Lucas, Field Gemologist of GIA released that 55 companies placed bids. Fifty-five of the 62 offered lots were sold, total of 91 percent by value and 90 percent by weight. The auction was a resounding success.
Meeting with the diversified demands, the auction is available to provide Mozambique rough rubies of low to high end. The report also commented on the quality by saying: “Some lots were already treated. The treatment included lead-glass filling for lower-end material. These lots were meant for manufacturers without expertise in ruby treatment. There were also higher-end lots that were not treated.
He noted that the ruby deposit in Mozambique contains the better quality of what one would have expected to find from both Burma and Thailand in the past, traditionally the best two sources of rubies in the world.
Market outlook
Gemfields has been instrumental in placing Zambian emeralds in the global market. Following the similar strategy for Mozambican ruby marketing, the company will build aspiration for the category as a whole focusing on Mozambique rubies including the new advertising campaign, international design cooperation and etc. “We are very confident that our Mozambique ruby mine has the potential to supply 25 to 30 percent of the world’s rubies in the next few years,” said Harebottle.
“We have seen huge demand for Mozambican rubies in the globe, which is before we have even started marketing our rubies. Once we started marketing our rubies, which is in the second half of this year, we noticed a further increase in demand. That is why we have positive outlook that the demand for Mozambican rubies will double in 2 to 3 years,” he continued.
The company is also working with the related authorities in Mainland China to bring down the import duty on precious coloured gemstones. Harebottle emphasized: “We can foresee that Mainland China will be one of our biggest markets for rubies.”
A new trend is noticed that higher quality rubies from Mozambique are more used in fine jewellery in the European market. “Actually the demand is from both fine jewellery market and mass market. We just had our rough ruby auction in June and we are waiting to see many of our auction winners showcasing the cut and polished stones in the Bangkok and Hong Kong jewellery shows in September,” Harebottle added.
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