Ruby production in Mozambique has soared again in the third quarter, already surpassing the target for the entire year, according to budget execution data consulted by Lusa today.
“In the group of precious and semi-precious stones, the highlight goes to ruby, which recorded a level of execution of 102% in relation to the annual plan and a growth rate of 49% in the period under analysis,” reads the budget execution report for the third quarter from the Mozambican Ministry of Economy and Finance.
“Resulting from the good performance of the company SLR Mining, which assumed the position of largest producer of this mineral resource, with the start-up of another processing plant. This company was responsible for the production of more than 70% of the total of this mineral resource,” the document details.
In nine months, Mozambique produced 3,145,391 carats of rubies, while the official forecast for the whole of 2024 was 3,080,895 carats.
Another factor that explains this growth in the third quarter – already seen in the second quarter – is related to the “full resumption of production by the company Moza Minerals, combined with the fact that the company Montepuez Ruby Mining carried out intensive excavation in three more highly productive blocks”.
Production had fallen by 55% in March, in year-on-year terms, to 252.6 thousand carats, according to the first quarter report, due to problems at the largest national mine, Montepuez Rubi Mining (MRM).
Lusa had previously reported that the value of Mozambican ruby exports had fallen by 80% in the first quarter, yielding around €4.6 million, according to data from the central bank.
The report on the balance of payments for the first quarter states that revenues from ruby exports fell from US$25.6 million (€23.7 million) from January to March 2023 to US$5.2 million (€4.6 million) in the same period this year.
The report linked the “low production levels of the largest producer of this mineral” to the “failure of production equipment” and “military instability in the north of the country”, in reference to attacks by rebel groups in Cabo Delgado, which increased sharply in the first three months of the year.
Global ruby production in Mozambique fell in 2023 to 2.7 million carats, compared to 4.2 million carats in 2022 and five million carats in 2021.
Ruby mining at the MRM mine in Cabo Delgado, northern Mozambique, alone, has generated almost one billion Euros since 2012, according to data released at the end of April by Gemfields, which owns 75% of the company.
According to data up to December from the “G Factor for Natural Resources” report, which aims to promote “transparency” on the level of human resource wealth shared by Gemfields “with host country governments” from the mining, oil, wood gas and fishing sectors, MRM had a total revenue of US$151.3 million (€141 million) in 2023.
Since Gemfields acquired 75% of MRM – in February 2012, the year mining exploration began, with ruby auctions starting two years later – the mine has accumulated revenues of over US$1,055 million (€982.7 million), paying the Mozambican state, in the same period, US$257.4 million (€239.7 million).
Last year, MRM paid the Mozambican state US$53.2 million (€49.6 million) in royalties and taxes, according to the same report.
MRM is 75% owned by Gemfields and 25% by Mwiriti Limitada, a Mozambican company.
