Ruby production in Mozambique experienced remarkable growth in the third quarter of 2024, exceeding the annual target and reinforcing the country’s position as one of the world’s leading producers of this precious gemstone. According to the budget execution report from the Ministry of Economy and Finance, Mozambique produced 3,145,391 carats of rubies between January and September of this year. This output surpassed the annual forecast of 3,080,895 carats, marking a 49% increase compared to the same period in the previous year.
This growth is largely attributed to the performance of SLR Mining, currently the largest ruby producer in Mozambique, accounting for over 70% of national production. The company commenced operations with a new processing plant, enhancing capacity and production efficiency. Other companies, such as Moza Minerals and Montepuez Ruby Mining (MRM), also contributed to the increased output. The former resumed full-scale production, while the latter intensified excavations across three highly productive blocks.
Key Ruby Mining Companies in Mozambique
- Montepuez Ruby Mining (MRM)
- Location: Montepuez District, Cabo Delgado Province.
- Ownership: A joint venture between Gemfields (75%) and Mwiriti Limitada (25%), a Mozambican company. Since beginning operations in 2012, MRM has generated over $1 billion in revenue, contributing $257.4 million to the Mozambican government in taxes and royalties.
2. Fura Gems
- Location: Montepuez District, Cabo Delgado Province.
- Ownership: A private company based in Dubai, UAE, holding multiple mining licenses in Mozambique.
3. SLR Mining
4. Moza Minerals
Challenges and Recovery
Despite its current success, the ruby industry in Mozambique faced significant challenges at the beginning of 2024. In the first quarter, production dropped by 55% year-on-year, totaling 252,665 carats. This decline resulted from technical issues at MRM and ongoing military instability in Cabo Delgado Province, which continues to impact the business environment in northern Mozambique. These factors led to an 80% decrease in ruby export revenues during Q1, falling to just $5.2 million compared to $25.6 million in the same period of 2023.
From Past Challenges to a Promising Future in the Global Market
The ruby industry in Mozambique is a vital source of revenue and foreign investment. In recent years, earnings have fluctuated significantly due to factors such as the pandemic, security concerns, and technical challenges. In 2023, Mozambique produced 2.7 million carats of rubies, down from 4.2 million in 2022 and 5 million in 2021.
In a global market with increasing demand for high-quality rubies, Mozambique continues to position itself as a leading producer, highlighted by iconic gems like the “Estrela de Fura” ruby, a 55.22-carat stone sold in June 2023 for a record-breaking $34.8 million at a New York auction.
The operational performance of companies, coupled with the potential for new mining block expansions, suggests that Mozambique can further capitalize on this industry. This growth is expected to drive not only export revenues but also contribute to regional socio-economic development. (Simão Djedje)
