Rubies from Mozambique: Gemfields raises $52 million despite trouble at its mine
At the October auction 90 of 99 lots found buyers, and the average price per carat rose sharply on the previous sale. But the Montepuez mine is struggling with illegal mining.
Symbolic image · Photo: W.carter / Wikimedia Commons, CC BY 4.0 (cropped and resized)
Gemstone miner Gemfields raised US$52.0 million at its October auction of mixed-quality rubies. The company announced the results on 19 October. Ninety of 99 lots were sold, a rate of 90.9 per cent. Of the 102,099 carats offered, 92,153 carats found buyers. The average price was US$564.54 per carat. The stones come from the Montepuez mine in Mozambique, which according to Club of Mozambique lies within one of the most significant ruby deposits discovered in the world in recent times.
According to Australian trade publication Jewellery World, the average price represents a 102 per cent increase on the previous ruby auction. The magazine urges caution, however: auction averages depend heavily on the size, quality and mix of the parcels on offer, so the figure does not mean ruby prices have doubled across the market. Club of Mozambique also notes that the volume offered was lower than in previous years.
The mine is operated by Montepuez Ruby Mining (MRM), which is 75 per cent owned by Gemfields and 25 per cent by Mozambican company Mwiriti Limitada. The company describes "a period marked by significant operational and financial constraints": an estimated 1,000-plus illegal miners enter the concession every day. Added to this are security disruptions, difficulties commissioning a second processing plant and delayed tax refunds. The proceeds are meant to bolster liquidity.