In 2024, Mozambique’s ruby production reached nearly 4 million carats, a 46% increase from 2023. The government exceeded its production target, achieving 3,145,391 carats by the end of Q3. The recovery in production was largely due to SLR Mining’s performance, despite earlier production challenges. MRM is also set to expand capacity significantly by 2025, indicating a robust future for the industry.
In 2024, ruby production in Mozambique experienced a significant increase, reaching nearly 4 million carats, a 46 percent rise from the previous year. Reports from the Portuguese news agency Lusa indicate that the government exceeded its production target of 3,080,895 carats within a nine-month period, achieving 3,145,391 carats by the end of the third quarter despite facing initial challenges such as production shortages and declining export values during the first quarter.
Production levels began to improve notably in the second quarter, contributing over half of the cumulative target by that point, while only 8 percent was completed in the first quarter. Continued strong performance in both the third and fourth quarters propelled total ruby production for 2024 to 3,946,506 carats. Despite early setbacks linked to equipment malfunctions at Montepuez Ruby Mining (MRM) and military instability, a recovery has been credited primarily to SLR Mining, which represented over 70 percent of total rubies produced this year.
Recent years have seen a decline in Mozambique’s ruby production, with outputs falling from 5 million carats in 2021 to 4.2 million in 2022, and further down to merely 2.7 million in 2023. Mozambique ranks among the world’s leading ruby producers, alongside countries such as Myanmar, Thailand, and Vietnam. Although ruby mining is relatively recent in the country, commencing in the 1990s, rubies were known to exist since the 1500s.
The Montepuez Ruby Mine, established in 2011 to extract resources from a deposit discovered in 2009, rapidly became the world’s largest ruby supplier, which initiated industrial ruby mining in Mozambique. However, in 2023, MRM lost its leading position to SLR Mining, a shift attributed to SLR’s new processing plant. SLR Mining was acquired by Fura Gems in 2020, part of the company’s strategy to solidify its presence in Mozambique by acquiring numerous mining licenses following its entry in 2017.
MRM has a chance to reclaim its top position this year, as Gemfields, which holds a 75 percent stake in MRM, plans to launch a second processing plant. This expansion is anticipated to triple the production capacity by the end of 2025, increasing output from 200 tonnes per hour to 600 tonnes. The facility is projected to create additional employment opportunities and provide increased revenue for the state.
Since commencing ruby auctions in 2014, MRM has contributed approximately $257.4 million to the Mozambican economy. In 2023 alone, the company remitted $53.2 million in royalties and taxes while employing around 700 workers and contractors, underscoring its significant role in the local economic landscape.
Mozambique’s ruby production is on a noteworthy upswing, with nearly 4 million carats produced in 2024, marking a substantial increase over prior years. The government has made strides to enhance its ruby outputs, aided significantly by SLR Mining’s contributions. As new processing facilities are scheduled to open, the potential for further economic growth is evident. MRM’s historical impact and future prospects indicate an important role in the regional mining sector.
Original Source: macaonews.org
