Mozambique’s ruby production experienced a significant resurgence in the second quarter of 2024, rebounding sharply after a steep decline in the first three months of the year. According to budget execution data reviewed by Lusa, the nation’s ruby output soared to over 1.64 million carats in the first half of the year, representing a 10% increase compared to the corresponding period in 2023. This production level has already surpassed 53% of the government’s annual target, set at 3.08 million carats, an impressive recovery given the stark challenges faced earlier in the year.
The first quarter of 2024 had seen a precipitous 55% year-on-year drop in ruby production, with only 252,600 carats mined. This decline was attributed to severe operational difficulties at the Montepuez Ruby Mining (MRM) operation, the nation’s largest ruby mine. MRM, situated in the conflict-prone Cabo Delgado province, grappled with equipment failures and escalating military unrest in the region, which have been exacerbated by insurgent activities. These disruptions not only stifled production but also caused a dramatic 80% fall in export revenues, plunging from $25.6 million (€23.7 million) in the first quarter of 2023 to a mere $5.2 million (€4.6 million) during the same period this year.
The turnaround in the second quarter, however, has been attributed to the remarkable performance of SLR Mining, a company that has emerged as the leading producer of rubies in Mozambique, accounting for over 70% of the nation’s total output during this period. This shift in industry dynamics underscores a potential realignment in the hierarchy of Mozambique’s gemstone sector.
Despite the early setbacks, Mozambique’s ruby sector appears on track for a strong 2024. The robust performance in the second quarter has set the stage for achieving, if not exceeding, the annual production target. This is a notable development considering that global ruby production in Mozambique had been on a downward trajectory, falling to 2.7 million carats in 2023, down from 4.2 million carats in 2022 and a peak of five million carats in 2021.
Montepuez Ruby Mining, a joint venture with 75% ownership held by the British firm Gemfields and 25% by the Mozambican company Mwiriti Limitada, remains a critical player in the sector. Despite its recent struggles, MRM has been a substantial economic contributor, generating nearly €1 billion since mining operations commenced in 2012. The mine’s total revenue for 2023 stood at $151.3 million (€141 million), with royalties and taxes amounting to $53.2 million (€49.6 million) paid to the Mozambican government.
As Mozambique navigates the complexities of ruby mining amidst socio-political challenges, the country’s ability to sustain and grow this sector will be crucial for its broader economic ambitions. With the ruby deposit at Montepuez being one of the most significant global discoveries in recent history, the strategic importance of this resource cannot be overstated.
Mozambique’s success in stabilising and expanding its ruby production in the coming months will be pivotal, not only for meeting domestic economic objectives but also for maintaining its status as a leading player in the global gemstone market.
