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Gemfields warns of potential disruption from unrest in Mozambique

24th Dec 2024 10:38

(Alliance News) - Gemfields Group Ltd on Tuesday warned that its operations may be affected by recent unrest in Mozambique.

The London-headquartered gemstones miner and marketer said it has several operations in Mozambique's northernmost province of Cabo Delgado. The largest is Montepuez Ruby Mining Limited, 75% owned by Gemfields.

The company said MRM's mining operations may be interrupted by unrest in Mozambique "based on the trajectory of the ongoing situation".

"In the areas surrounding MRM, groups associated with the illegal mining and trading of rubies have take advantage of the political unrest," the company said.

Gemfields said "instigators" set fire to MRM's community and radio centres, the offices of its operational grievance mechanism and the local police station in the village of Namanhumbir on Monday.

Namanhumbir is next to MRM's main residential village of infrastructure.

Gemfields said a water borehole for MRM's village was sabotaged and a further police station was set on fire.

"The company's priority remains the safety and security of its employees, contractors and community members", added.

Mozambique has been roiled by upheaval since the presidential elections on October 9. Daniel Chapo, the candidate of the Frelimo party which has ruled since 1975, secured 71% of the vote according to official results. The opposition leader Venancio Mondlane, who is said to have won 20% of the vote, fled abroad and called for protests.

Shares in Gemfields were up 3.9% to 7.00 pence in London on Tuesday morning, after opening lower.

By Michael Hennessey, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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