Political Unrest Threatens Mozambique's Ruby Industry

Gemfields Group has warned of potential disruptions at its largest ruby mine in Mozambique due to rising unrest following a disputed election. The violence has seen buildings torched in nearby villages and is linked to political tensions and allegations of vote rigging, impacting other foreign miners as well.

The Gemfields Group announced potential disruptions at its largest ruby mine in Mozambique amid escalating unrest following a disputed election. The turmoil has led to the torching of buildings in nearby villages and raises concerns for the ruby mining industry.

Violence surrounding Mozambique's political climate has claimed at least 130 lives, with foreign miners like South32 feeling the impact. According to Gemfields, groups linked to illegal ruby mining are exploiting the situation for their gain, setting fire to crucial sites such as a police station near the Montepuez Ruby Mining Limitada (MRM).

Gemfields holds a 75% stake in MRM, employing 1,400 people. Despite accusations of election fraud against the ruling party, Frelimo, and claims of vote-rigging, both the party and the electoral commission have yet to respond. The ongoing unrest threatens operations and livelihoods in the region.

(With inputs from agencies.)