Mine in Mozambique has gem reserves of 432 million carats

24 July 2015

An independent report shows that the Montepuez Ruby Mining concession in northern Mozambique, could contain reserves of 432 million carats of rubies and corundum, announced British multinational Gemfields, which leads the concession’s consortium.

Authored by British consultancy SRK Consulting, the report also said that the mine could be explored for a period of 21 years, anticipating that the project would be able to generate cash flow of US$2.7 billion over its lifetime.

With a forecast of increasing annual production capacity from 3.3 million tons to 5.6 million tons in 2017, in this period the project may receive investment of US$64 million, the document said.

The British consultancy said the project has primary ore reserves of 253 million tons at a concentration of 114.9 carats per ton, and secondary reserves of 179 million tons at a lower grade of 7.07 carats per ton.

At the end of June Gemfields held its fourth auction in Singapore with rubies mined in Mozambique, achieving revenues of US$29.3 million.

The British multinational’s entry in the Mozambican market occurred in June 2011 when it acquired a 75 percent stake in Montepuez Ruby Mining from Mwiriti Limited, which now has a 25 percent stake in the consortium. (macauhub/MO)