Gemfields has temporarily suspended its ruby mining operations in Mozambique due to escalating violence in the area.
On 24 December 2024, more than 200 persons staged an attempt to invade Montepuez Ruby Mining Limitada (MRM) in Mozambique Village and during their approach set fire to external structures built by MRM and containing, inter alia, a community cash point. Security forces comprising both the Mozambican police and military protected the MRM Village using a staged escalation of force. “Tragically, during the course of the morning, two individuals staging the attempt on MRM Village were shot, subsequently taken to the Montepuez district hospital and declared dead,” said Gemfields.
On the same day, in the nearby village of Wikupuri (which was constructed by MRM), the vocational training centre built by MRM and operated by Mozambique’s Institute for Vocational Training and Labor Studies (IFPELAC) was looted and damaged on two occasions. The inventory looted included farming inputs provided by MRM that were due to be distributed to over 800 local farmers to promote sustainable livelihoods.
For safety reasons, according to Gemfields, a number of people were temporarily relocated to offsite locations given the increased risk profile. MRM maintained a sizeable presence on site of more than 500 persons across employees, contractors and security components. The temporarily relocated personnel began a phased return on 26 December 2024. While MRM’s operations were halted from 24 December 2024, MRM intends to return to normal operations before the end of the year, said Gemfields.
On 23 December 2024, Gemfields announced that it will suspend all mining at Kagem emerald mine in Zambia for a period expected to be up to six months. Instead, Kagem will focus on processing ore from Kagem’s significant ore stockpile utilising the recently upgraded processing plant.
The company will also halt all non-essential spend and suspend planned capital expenditure at its ruby development assets in northern Mozambique, namely Megaruma Mining Limitada (MML) and Campos De Joia Limitada (CDJ). Eastern Ruby Mining (ERM) will continue core developmental work but will delay the capital expenditure associated with its originally planned processing plant.
Gemfields will halt operations at Nairoto Resources Limitada (NRL), the gold project situated north of MRM and seeking potential buyers, and assess strategic options in respect of Fabergé, the iconic luxury-brand owned by the group.
In the group’s strategic update, Gemfields regards the construction of the second ruby processing plant at MRM as a critical project to increase premium ruby production and deliver additional revenue for the group by the end of 2025. Construction presently remains materially on budget and on schedule for completion by the end of H1 2025 and Gemfields is working closely with its partners to deliver this project as planned.
03-01-2025
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