Gemfields, one of the world’s leading ruby miners, is grappling with escalating political instability in Mozambique, which threatens the operations of its Montepuez ruby mine—a key asset in the company’s portfolio. The unrest follows a disputed election in October, upheld by Mozambique’s Constitutional Council on Monday, sparking turmoil in the region.
Political Instability Sparks Violence
Armed groups have exploited the unrest, carrying out violent attacks near the Montepuez mine and other Gemfields-operated sites, including Megaruma, Campos De Joia, and Eastern Ruby Mining. The incidents include:
- Fires set in nearby villages, police stations, and some of Gemfields’ offices.
- Sabotage of the water supply to local communities and employee housing.
The violence is reportedly linked to groups involved in illegal ruby mining and trading, taking advantage of weakened governance in the region.
Operations Continue, But Uncertainty Looms
While operations at the Montepuez mine have not yet been suspended, the company has acknowledged that a temporary shutdown might be necessary if the violence escalates.
“The company’s priority remains the safety and security of its employees, contractors, and community members,” said Gemfields in a statement.
“Based on the trajectory of the ongoing situation, there may be interruptions to Montepuez’s mining operations resulting from this unrest.”
Gemfields is closely monitoring the situation and will provide updates as necessary.
A Critical Moment for Gemfields
The Montepuez ruby mine is a cornerstone of Gemfields’ operations, producing some of the most sought-after rubies globally. Any prolonged disruption could significantly impact the company’s output and revenue, as well as the livelihoods of local communities dependent on mining operations.