Mozambique’s ruby production is forecasted to increase by 46% in 2024, reaching 3.9 million carats, according to government figures reported by Lusa on 28 February. This growth follows a rebound in the country’s gemstone sector, driven primarily by the strong performance of leading mining companies.
Exceptional Growth in Ruby Production
The report highlights that rubies led the precious and semi-precious stones segment, achieving 128% of the annual planand demonstrating a 46% growth rate. This marks a significant recovery after ruby production dropped to 2.7 million carats in 2023 from 4.2 million carats in 2022 and five million carats in 2021.
The government’s annual target for 2023 was three million carats, which was significantly surpassed. The growth is attributed to the expansion activities of SLR Mining, which emerged as the largest ruby producer in Mozambique. The company opened a new processing plant, contributing to over 70% of the total production of rubies.
Additional growth factors included the full resumption of operations by Moza Minerals and intensive excavations at three highly productive blocks by Montepuez Ruby Mining (MRM).
Montepuez Ruby Mining’s Impact
Also read: Gemfields sells nearly US$69M of rubies at June auction
MRM, a significant player in the sector, has generated nearly a billion dollars in revenue since mining began in 2012. The company, 75% owned by Gemfields and 25% by Mwiriti Limitada, recorded a total income of $151.3 million in 2023.
Since the start of its ruby auctions in 2014, MRM has accumulated over a billion dollars in revenue, contributing $257.4 million (16.2 billion meticals) to the Mozambican government through royalties and taxes. In 2023 alone, the company paid $53.2 million (3.3 billion meticals) to the state.
A Promising Outlook for Mozambique’s Gemstone Sector
The resurgence of Mozambique’s ruby industry not only strengthens the country’s position as a leading gemstone producer but also highlights the potential for mining to contribute to economic growth. With companies like SLR Mining, Moza Minerals, and MRM driving production, the sector is poised for continued expansion, promising increased revenues and greater benefits for the local economy.
