Gemfields on High Alert as Mozambique Faces Political Unrest

Gemfields, a prominent gemstone mining company, is keeping a vigilant eye on Mozambique's escalating political unrest, especially in the Cabo Delgado region where its primary ruby mining operation, Montepuez Ruby Mining (MRM), is located. With a 75% ownership in MRM, the company is directly affected by the country's current instability.

The unrest in Mozambique was triggered by the recent election results, leading to widespread protests and violent confrontations, with significant infrastructural damage and loss of life. Gemfields has responded by intensifying security measures around its operations, ensuring the safety of its staff while aiming to maintain business operations amidst the chaos.

The company is no stranger to security issues in Mozambique. In 2022, an insurgent attack near the MRM site forced Gemfields to evacuate its workers, highlighting the region's volatile nature. This precedent has informed their current strategy, where they are bracing for potential disruptions while prioritizing employee safety.

This situation is not isolated to Gemfields; other mining companies like South32 have also felt the impact, with South32 retracting its production forecasts for Mozal Aluminium due to logistical disruptions from the unrest.

Gemfields has had a mixed history in Mozambique, marked by successful mining operations and significant controversies, including accusations of human rights violations. Now, they face another challenge with the political instability that could affect their operational capabilities.

The company's approach involves constant monitoring of the situation on the ground, maintaining open lines of communication with local authorities, and readiness to adapt their operational plans according to the evolving security environment. Gemfields is committed to its Mozambican operations but is prepared to take necessary measures to protect its interests and employees during this period of uncertainty.