Montepuez Ruby Mining expected to start producing rubies in Mozambique at the end of the year

18 July 2012

Montepuez Ruby Mining, a partnership between British multinational company Gemfields (with a stake of 75 percent) and Mozambican businesspeople (25 percent) is due to start producing rubies at the end of next November, Mozambican daily newspaper Notícias reported.

Raime Raimundo, one of the project’s Mozambican partners, told the newspaper that production had already been scheduled to begin, which had not happened because of a delay in the arrival of necessary equipment.

“We expect that the equipment will be installed and operating by the end of August and, if everything goes as planned, we should start seeing the first gems at the end of November or mid December,” said Raimundo.

Raimundo also said that the choice of Gemfields to establish the partnership was based on the fact that the British company had the necessary profile, as well as the fact that it was listed on the London Stock Exchange.

“One of the big advantages of this company is that the Mozambican partner has zero risk, or rather, everything that is related to the financial engineering and machinery is Gemfields’ responsibility,” he said.

The company has so far invested US$5 million in the project, which is expected to increase to US$25 million over the next five years.

Rubies are the second-hardest gemstones after diamonds and are used essentially to manufacture jewellery. It is thought that Montepuez may have the world’s largest ruby deposit. (macauhub)