Two killed in further unrest near Gemfields Mozambique venture
Gemfields Group Limited
6.75p
16:55 27/12/24
Gemfields updated the market on the unrest in Mozambique on Thursday, reporting two deaths as “illegal” ruby mining groups exploited ongoing political instability.
FTSE AIM All-Share
715.19
17:00 27/12/24
Mining
10,154.31
16:29 27/12/24
The AIM-traded firm first reported disruptions, including fires and attempted invasions, on 24 December, targeting facilities operated by Montepuez Ruby Mining Limitada (MRM), a joint venture in which Gemfields holds a majority stake.
It said that on Christmas Eve, over 200 people attempted to breach the MRM residential village near Namanhumbir, setting fire to structures, including a community cash point.
Mozambican police and military forces intervened, using a staged escalation of force to protect the site.
It said that two individuals involved in the incursion were shot and later succumbed to their injuries at Montepuez district hospital.
In response to the heightened risks, Gemfields temporarily relocated some personnel from the affected area while maintaining an on-site team of over 500 employees, contractors, and security staff.
The company started a phased return of relocated personnel on 26 December, and was aiming to resume normal operations before year-end.
Activities at the mine had been suspended since 24 December.
Further incidents occurred in the nearby village of Wikupuri, where a vocational training center established by MRM was looted and damaged twice on the same day.
Stolen inventory included farming supplies intended for distribution to over 800 local farmers as part of MRM’s sustainable livelihoods initiative.
Gemfields reiterated its commitment to the safety of its personnel and the well-being of the local communities.
At 0817 GMT, shares in Gemfields Group were up 3.64% at 6.84p.
Reporting by Josh White for Sharecast.com.