Mozambique’s Ruby Production Set to Reach Nearly 4 Million Carats in 2024

Mozambique’s ruby production is on track to reach nearly 4 million carats in 2024, a 46% increase from the previous year. The government exceeded its target by 3,145,391 carats, driven by strong performances from SLR Mining. Despite prior production difficulties, the sector shows signs of recovery, contributing significantly to the nation’s economy.

In 2024, Mozambique’s ruby production is projected to approach 4 million carats, marking a significant increase of 46 percent compared to the previous year, as reported by the Portuguese news agency Lusa. The government exceeded its target of 3,080,895 carats within just nine months, achieving 3,145,391 carats by the conclusion of the third quarter, despite enduring production challenges and a decline in export values during the first quarter.

Production levels rose dramatically in the second quarter, which contributed to over half of the annual target, whereas only 8 percent was reached in the first quarter. Following this surge, robust production continued in both the third and fourth quarters, resulting in a total output of 3,946,506 carats for the year. Equipment malfunctions at Montepuez Ruby Mining (MRM) and concerns related to military instability were previously responsible for production shortfalls but were largely outweighed by the performance of SLR Mining.

SLR Mining was credited with generating over 70 percent of the total ruby output, alongside the recovery efforts by Moza Minerals and MRM’s intensified excavation operations in three additional productive blocks. Mozambique has seen a decline in ruby production in recent years, dropping from 5 million carats in 2021 to just 2.7 million in 2023.

Mozambique is recognized as one of the world’s leading ruby producers alongside Myanmar, Thailand, and Vietnam. The industrial ruby mining sector in Mozambique began in the 1990s, although ruby discoveries date back to the 1500s. The Montepuez Ruby Mine was established in 2011 to harness resources from the Montepuez deposit uncovered in 2009, rapidly becoming the largest global supplier of rubies.

Last year, SLR Mining surpassed MRM as the top producer, a shift attributed to SLR’s addition of a new processing plant. SLR Mining, which was acquired by Fura Gems in 2020, has aimed to strengthen its market position in Mozambique following its entry in 2017 and the acquisition of multiple mining licenses.

MRM has the potential to reclaim its leading position this year, with Gemfields anticipating the launch of a second processing facility. This new plant is expected to enhance production capacity from 200 tonnes per hour to 600 tonnes by the end of 2025, thus promising new job opportunities and increased government revenue. Since commencing ruby auctions in 2014, MRM has contributed approximately US$257.4 million to state revenues. In 2023 alone, the company remitted US$53.2 million in taxes and royalties, employing around 700 individuals.

In summary, Mozambique’s ruby production is witnessing a substantial recovery in 2024, with a significant increase from previous years. Key players in the sector, particularly SLR Mining and MRM, are critical in driving this resurgence despite previous challenges. The introduction of new processing facilities and increased excavation efforts are pivotal for future production growth and economic contributions.

Original Source: macaonews.org