The government anticipates a 3% increase in ruby production capacity in 2026, surpassing four million carats. This projection results from the resumption of activities by one of the companies operating in the country and is included in budget forecasts, which compare this increase with the 3.9 million carats expected for this year and the four million produced in 2024.
The Executive estimates a total production of 4.1 million carats for 2026. In a document released by the Ministry of Finance, which oversees public accounts management, it states that “this forecast is associated with the suspension of production activities by the third-largest producer of this gemstone,” whose resumption is expected to bolster national output.
Currently, around 70% of ruby production is destined for export, a target the government aims to raise to 79% by 2029. Despite this, revenues fell 30% in the first quarter to $5.1 million, down from $7.2 million recorded between January and March 2024, according to the Bank of Mozambique.
The revenue decline is linked to operational challenges in the sector. Gemfields, a British company operating mines in Mozambique, postponed the usual ruby auction at the Montepuez mine to early 2026. The company cited daily “sabotage” by hundreds of illegal miners at the new processing facility under construction in Cabo Delgado Province as the reason for the delay.
In an October statement, Gemfields, which leads Montepuez Ruby Mining (MRM), explained that it decided to postpone the auction originally scheduled for November/December due to the “previously announced delay in the full operational start of the second processing plant,” a delay “exacerbated by illegal miners’ actions.”
Gemfields detailed that between 250 and 400 illegal miners have “significantly” affected operations by sabotaging essential infrastructure. The company also warned that illegally extracted rubies harm market prices and reduce the country’s tax revenues, while assuring that it continues to cooperate with the Mozambican authorities to mitigate this impact.
MRM plans to triple the mine’s processing capacity to 600 tons per hour. This expansion is part of a $70 million investment in a 35,000-hectare concession, 75% owned by Gemfields and 25% by Mwiriti, a Mozambican partner in the project.
Gemfields acknowledges that the construction of the second processing unit, designated PP2, is “a crucial project” to increase premium-quality ruby production and generate more revenue by the end of 2025. The company added that this new unit could enable future expansions to “other mining areas” within the same concession.
MRM currently employs 1,300 workers, 94% of whom are Mozambican. The government believes that, with the resolution of constraints caused by illegal miners and the enhancement of industrial capacity, ruby production could resume growth, contributing to increased exports and national revenue.
Source: Lusa
