London-based mining company Gemfields announced on Friday that it had raised a record $88.4 million from a series of mini auctions of rubies from its mine in the Montepuez district of northern Mozambique.
The auctions took place online between 8 November and 9 December and customers were able to view the plots of mixed-quality rubies through in-person and private viewings in Bangkok, Dubai, and Jaipur. Of the 107 lots offered, 104 were sold with an average price of USD 132.47 per carat.
According to Adrian Banks, Gemfields’ Product and Sales Director, “This has been the strongest ruby auction in Gemfields’ history and we are very pleased with the trajectory and growth of the downstream ruby sector. Professionalised and reliable supply has always been key to unlocking growth.”
Since its first ruby auction in 2014, Gemfields, through Montepuez Ruby Mining (MRM) has sold a total of 13.6 million carats of raw rubies and that generated $731.5 million in total revenue.
In 2019, MRM generated $122 million in ruby auction revenue, while in 2020, no auction could be held due to the pandemic. The mine was suspended from April 2020 to March 2021.
Meanwhile, in recent years, Mozambican rubies have been in high demand in the international market especially in Asia. A study published last year showed that over 50 percent of Chinese buyers want to buy rubies and emeralds from Mozambique.
According to the document, Gemfields’ first report on gemstones in China, revealed that 35 percent of Chinese jewellery owners intend to buy rubies and 25 percent want the emeralds.
Montepuez Ruby Mining holds a 25-year concession in a 340 square kilometre area in Montepuez, Cabo Delgado province. Gemfields holds a 75% stake in the company, with the other 25% owned by Mozambican company Mwiriti.
