Montepuez Ruby Mining boosts investment in ruby mining project in Mozambique

22 April 2013

Montepuez Ruby Mining, Lda, a partnership between British company Gemfields and Mozambique’s Mwirit, plans to invest US$27 million by the end of the year in Namanhumbiri, in the district of Montepuez, in the northern Mozambican province of Cabo Delgado, Rádio Moçambique reported.

During a visit from the Mozambican President, an official from Montepuez Ruby Mining said that so far US$9.7 million had been invested and that the company would have an installed capacity to wash 50 tons per hour of material from the mine, which in the current experimental stage is limited to 15 tons per day.

The official also said that the board of directors of the company, in which Gemfields has a 75 percent stake, plans to increase that installed capacity to 100 tons per hour.

In 2012 one of the project’s Mozambican partners 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,” said Raime Raimundo.

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 and its rubies will be exported to Thailand and India. (macauhub)