The value of ruby exports stood at 5.2 million dollars in the first quarter of this year, representing a drop of 80% compared to the same period in 2023, when the figure reached 25.6 million dollars.
According to the balance of payments report drawn up by the Bank of Mozambique, several factors contributed to this sharp drop in ruby exports. Among them is the instability experienced in the northern province of Cabo Delgado, which has been the scene of terrorist conflicts for more than six years.
“The reduction in exports is linked to low production levels at the largest producer of this mineral (Montepuez Ruby Mining), breakdowns in production equipment and military instability in the north of the country,” explained the central bank.
In May, the budget execution report revealed that ruby production in Mozambique was 252,600 carats in the first quarter of this year, a 55% drop compared to the same period in 2023, when production reached 567,400 carats.
The document drawn up by the Ministry of Economy and Finance indicated that this low performance represents only 8% of the forecast for the whole year. Overall, ruby production in the country had already fallen in 2023, totaling 2.7 million carats, compared to 4.2 million carats in 2022 and 5 million carats in 2021.
In April, the British company Gemfields announced that the exploitation of rubies at the MRM mine, located in Cabo Delgado province, had brought in a total of one billion dollars (63.2 billion meticais) since 2012. In 2023, the mining company earned a total revenue of 151.3 million dollars (9.5 billion meticais).
“Since Gemfields acquired 75% of MRM in February 2012, the mine has accumulated revenues of more than one billion dollars, having paid the state 257.4 million dollars (16.2 billion meticais) in the same period,” the company said in a statement.
MRM, which is also 25% owned by Mwiriti Limitada (a Mozambican company), paid the state 53.2 million dollars (3.3 billion meticais) in royalties and taxes last year. Montepuez Ruby Mining is a Mozambican company that operates a ruby deposit of approximately 33,600 hectares and is believed to be the most significant recently discovered in the world, creating more than 1,500 jobs locally, 95% of which are occupied by Mozambicans, with 65% coming from Cabo Delgado.
Gemfields, a world leader in the responsible mining and marketing of colored gemstones, in addition to MRM, operates the Kagem emerald mine in Zambia and holds bulk sampling licenses in Ethiopia.
