Montepuez Ruby Mining (MRM) plans to triple its ruby processing capacity at its mine in Cabo Delgado, in northern Mozambique, increasing from the current 200 to 600 tons per hour, according to a source from Gemfields cited by the Lusa agency on Tuesday, June 17. The project involves a total investment of around 4.9 billion meticais (70 million dollars), excluding taxes and fees.
In an interview with Lusa, a Gemfields source — the company that owns and operates the mine — acknowledged that the construction of a second processing unit, called PP2, is “a crucial project to increase the production of premium rubies and generate additional revenues for the group by the end of 2025.”
According to the company, the new unit is expected to be completed by the end of the first half of this year. Gemfields holds 75% of MRM, which has a concession of 34,966 hectares, while the remaining 25% belongs to the Mozambican company Mwiriti.
“PP2 is a secondary processing unit, which means a larger amount of ore can be processed simultaneously. Adding the second unit should triple MRM’s processing capacity from the current 200 tons per hour to 600 tons per hour,” the source explained. The expectation is that the new unit will allow the processing of existing stock and increase the supply of rubies in the market with different size and color variations.
The second unit also opens the possibility of expansion into other mining areas within MRM’s concession, which currently employs 1,300 workers, 94% of whom are nationals. “The investment in PP2 is the largest ever made by the Gemfields group and represents our ongoing commitment to Cabo Delgado province and the local communities, for whom the creation of additional jobs and economic development are crucial,” stated MRM’s CEO, Prahalad Kumar Singh.
Of the total planned investment of 4.9 billion meticais (70 million dollars), 4.2 billion meticais (60 million dollars) have already been spent. The company also plans to expand its mining fleet in 2026.
With the full launch of the new unit, processing rates are expected to triple, which should significantly increase both production and revenues from ruby extraction. This expansion comes at a time when the colored gemstone market is expected to “recover and continue its medium- to long-term upward trajectory.”
“Gemfields remains confident that the company and the sector have a promising growth phase ahead,” added the source.
Gemfields is considered a world leader in responsible mining and marketing of colored gemstones. Besides MRM, the company holds 75% of the Kagem emerald mine in Zambia, recognized as “the largest emerald mine in the world,” as well as bulk sampling licenses in Ethiopia, among other operations.
According to the latest “G Factor for Natural Resources” report, released on June 5 by Lusa, the MRM mine recorded total revenues of about 8.2 billion meticais (117.2 million dollars) in 2024. The report aims to promote transparency in sharing the wealth generated by natural resources between companies and host country governments, covering mining, oil, gas, timber, and fishing sectors.
In 2023, the same mine recorded revenues of about 10.6 billion meticais (151.3 million dollars). Since Gemfields acquired its 75% stake in MRM in February 2012 — the year mining began and two years before the start of ruby auctions — the mine has accumulated revenues exceeding 77.2 billion meticais (1.1 billion dollars), paying about 20 billion meticais (285.5 million dollars) to the state during the same period.
Mining activity at MRM resumed last January after a halt due to social unrest in the region, following post-election protests related to the general elections held on October 9, 2024.
Source: Diário Económico
