Mozambique's Largest Ruby Mine, MRM, Set to Resume Operations Amid Post-Election Unrest


    Mozambique's Largest Ruby Mine,      MRM, Set to Resume Operations      Amid Post-Election Unrest

Montepuez Ruby Mining (MRM), managing Mozambique's premier ruby mine, has declared intentions to restart production by year's end following a suspension triggered by post-election turmoil. The mine, situated in Cabo Delgado's north, ceased activities on December 24 due to escalating security issues.

The halt came after a violent episode where over 200 individuals tried to breach the MRM village, causing significant damage by fire and destruction. In response, security forces, including police and military, engaged, leading to two fatalities. Consequently, approximately 500 workers were evacuated starting December 26 to safer areas.

In a statement to Lusa, MRM expressed confidence in resuming normal operations before the year concludes, despite recent attacks on the nearby Wikupuri village, which the company also developed, resulting in further looting and destruction.

The unrest began after Mozambique's Constitutional Council announced Daniel Chapo, backed by the ruling Frelimo party, as the presidential election winner with 65.17% of votes, leading to widespread protests. The opposition, particularly supporters of Venâncio Mondlane, who secured 24% of the votes, have taken to the streets, resulting in barricades, looting, and clashes with law enforcement in Maputo and beyond.

Since its inception in 2012, MRM has been a significant economic force, generating over €1 billion in revenue, according to Gemfields, which holds a 75% stake in the company. In 2023, MRM contributed $151.3 million in revenue, with $53.2 million paid in royalties and taxes to the Mozambican government.

The mine's operations, while lucrative, have been put at risk by the recent political instability, illustrating the delicate balance between economic development and political stability in regions prone to conflict. MRM is co-owned by Gemfields and Mwiriti Limitada, with the latter holding a 25% share.

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