Mozambique’s leading ruby producer sees solid demand despite growing security and production challenges
Gemfields has reported $11 million in revenue from its latest mini-auction of rough rubies mined at Montepuez Ruby Mining (MRM) in Mozambique, even as rising illegal mining activity continues to disrupt operations in the region.
The online auction, held from September 29 to October 3 following viewings in Bangkok, Thailand, saw 26 of 33 lots sold, representing 62% of the total 297,449 carats offered. The sale achieved an average price of $59.43 per carat, reflecting continued appetite for Mozambican rubies in the international market.
“This mini-auction featured mainly medium and commercial grades from a newly developed area in the ‘Maninge Nice’ domain,” said Adrian Banks, Gemfields’ Product and Sales Managing Director. “We’re encouraged by both the results and the strong customer engagement, which signals growing interest in this new material.”
Seven lots, largely smaller and lower-quality grades offered for the first time, remained unsold. Banks added that feedback from this sale would be used to refine future offerings as part of the company’s ongoing market development strategy.
Mozambique Operations and Revenue Repatriation
The rubies were mined by MRM, a joint venture 75% owned by Gemfields and 25% by local partner Mwiriti. All auction proceeds will be repatriated to Mozambique, with royalties paid to the government based on full sales values — reinforcing MRM’s contribution to the national economy.
Auction Delay and Operational Setbacks
Gemfields also announced a postponement of its regular November/December ruby auction to January or February 2026, citing delays in the final commissioning of MRM’s second processing plant. The company noted that the delay has been worsened by illegal mining activity, which has recently intensified.
According to Gemfields, between 250 and 400 illegal miners have been trespassing daily onto MRM’s mining areas, damaging equipment and supply infrastructure. The company warned that the growing scale of illicit mining not only threatens its operations but also undermines legitimate market prices and erodes Mozambique’s tax revenues.
Working with Authorities
Gemfields and MRM said they are working closely with Mozambican authorities to tackle the illegal mining crisis and protect the long-term sustainability of the country’s ruby sector.
Despite the challenges, Gemfields remains one of the world’s leading coloured gemstone producers, continuing to balance market innovation with efforts to ensure safe, responsible, and transparent mining in Mozambique.
