Gemfields increases ruby production in Mozambique

27 September 2016

The British company Gemfields has increased production and reduced the cost of operating a ruby mine at Montepuez in Mozambique’s Cabo Delgado province, indicates the annual report and accounts for the financial year that ended on 30 June 2016.

The report specifies that ruby and corundum production during that financial year amounted to 10.3 million carats, compared to 8.4 million carats produced in the previous financial year.

Production recorded during the financial year that ended on 30 June 2016 led to income of US$73.1 million, at an average price of US$45.50 per carat.

Production costs fell very slightly from US$2.57 to US$2.54 per carat.

Gemfields also reported in the document that the Montepuez mine has probable reserves of 432 million carats and an operational life of 21 years.

Gemfields controls 75 percent of the share capital of Montepuez Ruby Mining Ltd. The remaining 25 percent is held by the Mozambican company Mwiriti.

The British company is involved in other Mozambican projects via Eastern Ruby Mining Limitada, Mozambique, and Megaruma Mining Limitada, Mozambique, ruby mining companies in which it also holds a 75 percent stake. (Macauhub)