Precious stone miner Gemfields will expand its footprint in Mozambique as it has entered into a contract to build an extra processing capacity for $70m (R1.3bn) that will triple its production in the region.
Montepuez Ruby Mining (MRM), in which Gemfields has a 75% stake, concluded a deal with specialist engineering group Consulmet for the construction of the processing plant at MRM’s ruby mine in Mozambique that is set to come online in the first half of 2025.
The company, valued at about R4.5bn on the JSE, said in Monday’s statement that the second plant will triple MRM’s processing capacity from 200 to 600 tonnes per hour, allowing it to market additional size and colour variations of rubies and consider expanding into more mining areas.
Funded with a combination of cash and debt, 30% is estimated to fall in the 2023 financial year, 60% in 2024 and the rest in 2025.
“This investment constitutes the single-largest investment yet made by the Gemfields Group and represents our ongoing commitment to the province of Cabo Delgado, to Mozambique and to our local communities for whom additional jobs and economic development are of pivotal importance,” MRM GM Prahalad Kumar Singh said.
Over the past year, Gemfields and MRM have sometimes been forced to evacuate personnel as insurgents linked to Islamic State terrorised the Cabo Delgado province in the north of Mozambique.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.