Gemfields, a London-listed company and world leader in mining and marketing colored gemstones, announced that the completion of the second ruby processing plant (PP2) of its subsidiary Montepuez Ruby Mining (MRM), located in Cabo Delgado province in northern Mozambique, representing a 70 million dollar investment, has been postponed until September this year.
Despite challenges faced, the new unit — which will triple MRM’s ore processing capacity from 200 t/h to 600 t/h — is 95% complete and progressing within the planned budget. The main components will begin operation in August to produce the first gemstones.
The final completion was delayed due to difficulties in obtaining work permits for the installation of specialized equipment such as electrical components and Supervisory Control and Data Acquisition (SCADA) systems, essential for operation. Additional logistical challenges included the transport of a key transformer, which was damaged during transit to the mine. Of approximately 300 shipments planned for this construction phase, 287 arrived successfully at MRM’s facilities.
At the same time, the company faces increasing insecurity and operational difficulties caused by invasions of illegal miners. In the last months of 2024 and early 2025, following the general elections on October 9, there was a rise in large, organized groups entering MRM’s licensed areas — and, in some cases, active operation zones — putting employees, contractors, and local communities at risk.
In response, Gemfields has intensified cooperation with authorities and launched a multi-agency operation to reduce the number of intruders. The company emphasizes continuous communication with communities, raising awareness about the dangers of illegal mining, and implementing stronger security measures. MRM’s concession is patrolled by the Mozambican army and police, supported by an internal and contracted security team as well as trained community members, all aligned with the Voluntary Principles on Security and Human Rights. The company conducts drone surveillance, maintains direct and permanent contact with authorities and local communities, and constantly updates intelligence to ensure the safety and integrity of operations.
Although it faces natural difficulties associated with the geological characteristics of the gems — namely the natural variability of quantities and quality of gemstones found — the company describes the 70 million dollar investment in this new unit as a solution to increase efficiency and make the most of MRM’s ruby ore stock, estimated at 1.48 million tons. The PP2 will not only increase processing capacity to 600 t/h but also improve the supply to the global market by expanding the diversity and volume of stones of different colors and sizes.
Gemfields emphasizes that this investment was only possible thanks to the partnership and commitment with Consulmet Africa, which has worked tirelessly to overcome logistical and operational challenges, especially in a province affected by instability and the presence of illegal miners.
Montepuez Ruby Mining, a Mozambican company operating one of the largest ruby mines in the world, covering about 33,600 hectares, has contributed since 2012 to a total revenue of one billion dollars (63.2 billion meticais). In 2023 alone, total revenue reached 151.3 million dollars (9.5 billion meticais).
Meanwhile, the company continues strategic operations to strengthen its other international ventures. Its Kagem emerald mine, located in Zambia and considered the largest of its kind worldwide, has resumed focused operations with the reopening of two exploration fronts in the Chama pit, while a broader expansion aligned with market condition changes is expected to start from July. On the other hand, after completing a rights issue, Gemfields is resuming exploration of strategic options for its luxury brand, Fabergé.
Source: DE
