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Gemfields Resumes Operations at Mozambique Ruby Mine After Unrest Disrupts Production

Gemfields has resumed full-scale mining at its Montepuez ruby mine in northern Mozambique, following a temporary suspension of operations due to violent attacks by groups linked to illegal mining.

The London-based mining company confirmed that activity at the site is “running at full capacity,” and said the situation in the surrounding communities appears stable.

The suspension came after an attempted invasion of the mine’s village on December 24, when a group of more than 200 people set fire to buildings, including a community cash point, in the village of Namanhumbir, near the Montepuez mine.

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Mozambican police and military forces intervened to protect the area, using a “staged escalation of force” that resulted in the deaths of two individuals involved in the attack.

Gemfields said property in nearby villages, including Wikupuri, was looted and damaged during the unrest. The attackers targeted the mine’s vocational training center, stealing farming equipment intended to support more than 800 local farmers.

The mining company evacuated some staff to offsite locations but began a phased return of its personnel on December 26.

The company attributed the attacks to groups involved in illegal ruby mining, who are attempting to take advantage of political unrest in Mozambique following a contested presidential election in October 2024.

The political turmoil escalated on December 23, when Mozambique’s Constitutional Council upheld the election results in favor of Frelimo Party candidate Daniel Chapo. The ruling sparked nationwide protests, with the opposition alleging the election was rigged.

Venancio Mondlane, the opposition candidate from the Democratic Renewal Party, has declared himself the rightful winner and called for a shutdown of the country’s mining sector until the new government takes office on January 15.

Local reports indicate that anti-government groups have been targeting infrastructure in Cabo Delgado province, where the Montepuez mine is located.

In Namanhumbir, protesters set fire to the police station, the community grievance center, and a community radio station on the day of the constitutional ruling. In Wikupuri, the local police station and administrative offices were also burned, and in the village of Nanune, the water supply was cut off.

The Montepuez mine is one of the world’s largest sources of high-quality rubies and is jointly owned by Gemfields and Mozambican partner Mwiriti Limitada.

Gemfields has long faced security challenges in Cabo Delgado, a province that has been plagued by armed insurgencies since 2017. While the insurgents were initially linked to Islamist extremist groups, recent attacks have been driven by a mix of political, criminal, and economic motives.

The company said it remains vigilant but hopeful for peace in the region.

The Montepuez mine is crucial to Gemfields’ revenue, generating millions of dollars from ruby auctions held in Singapore and Thailand. However, the ongoing unrest poses a risk to the company’s future operations in Mozambique.

Gemfields reported disruptions in its supply chain during the suspension but said it expects operations to stabilize in the coming weeks.

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