Samora Machel Jr., Chairman, Montepuez Ruby Mining (MRM)
• Interview
How would you describe MRM’s commitment to development and sustainability?
MRM operates the Montepuez ruby deposit in Cabo Delgado. It is 75% owned by Gemfields and 25% by Mozambican company Mwiriti. Covering approximately 33,600ha, it is believed to be the most significant recently discovered ruby deposit in the world. We must structure the gemstone industry to maximize profits generated by the country’s resources, while ensuring we bring in the maximum amount of money into the country. MRM aspires to be the guardian of Mozambique’s rubies, operating them responsibly, transparently, and ethically, and involving the government in all processes, all while contributing positively to the national economy and taking a leading role in modernizing the colored gemstone sector and building sustainable livelihoods for communities. Since the beginning of the operation, MRM has invested a total of USD241 million as part of its commitment to CSR and Mozambique. Part of this investment went toward community development projects, establishing schools with a combined capacity of 2,000 students, funding the vocational training of 2,100 local youths, providing two mobile clinics that supply medical services to 10 local communities, and supporting farming associations. We also support biodiversity conservation in Quirimbas National Park and the Niassa National Reserve. We have also committed USD7 million to the development of the RAP village (resettlement of 105 families from Nthoro village). RAP is our priority project and will be completed as scheduled, although the handover might be delayed by a month due to the COVID-19 pandemic.
In what way do rubies extracted in Mozambique stand out?
The discovery of rubies in Mozambique in 2009 was a real gamechanger. Rubies from different origins often have distinctive hues, but Mozambican rubies were formed about 500 million years ago and span all known color ranges, including the rarest pure fluorescent reds. Mozambique has fast become the world’s number-one ruby exporter, yielding record-breaking auction results for Gemfields. Following the US-led ban on rubies from Myanmar in 2008, Mozambique’s consistency and transparency has instilled renewed confidence in rubies and enabled high-end jewelry brands to create extraordinary capsule collections with fine rubies.
After a few years of stability, MRM witnessed episodes of disorders and illegal mining in February 2020. What role can MRM play in this?
In 2020, MRM has been increasingly invaded by illegal miners, sometimes culminating in fatalities due to the collapse of the pits where they illegally conduct mining activity. MRM continues to work closely with authorities to raise awareness among local communities of the dangers of artisanal mining and to assist in tackling ruby smuggling and reduce the risk to, and exploitation of, vulnerable groups by well-organized syndicates. MRM has undertaken steps to reduce the amount of illegal mining activity, providing humanitarian assistance in rescue and recovery operations and immediately reporting any accident to all stakeholders at both district, provincial, and national levels.
How will your strategy be affected by the COVID-19 crisis?
Due to widespread travel restrictions, the mixed quality auction scheduled for June 2020 is likely to be rescheduled, which may result in one single auction in 4Q2020. The wellbeing of MRM’s employees and communities remains the overriding priority. Security, maintenance, and other essential services will continue in order to ensure MRM is well placed to resume normal operations as soon as it is safe to do so. MRM has also suspended all expansionary capital expenditure for the foreseeable future, including the USD12-million second treatment plant.
What are your objectives for 2020?
MRM’S objectives for 2020 are to increase carat production from 2,260.7kcts in 2019 to 5,400kcts in 2020, participate in more auctions, and increase staff members to 709 by December 2020. Our longterm vision is to be the global leader in precious colored gemstones, promoting transparency, trust, and responsible mining practices. Our approach has always been progressive and unconventional. We are a young, dynamic company and support raw emerging talent. We seek to do things differently and maintain a considered balance between people, profit, and the environment. ✖
Goal to increase carat production to 5,400 kcts in 2020
USD241 million invested as part of commitment to CSR