Exports of Mozambican rubies fell sharply in 2024, dropping to about 9.8 billion meticais (equivalent to 153 million dollars), according to Bank of Mozambique data. Montepuez Ruby Mining (MRM), the sector’s largest operator, points to a combination of factors, from insecurity in Cabo Delgado to the fragility of international markets, as the explanation for this contraction.
In a year particularly marked by economic and social instability, MRM faced not only a reduction in the production of high-quality rubies, but also a sharp fall in global demand – notably in the Chinese market, traditionally strategic for these gems. To these challenges were added operational disruptions, growing illegal mining and a climate of insecurity in the mining areas.
Concessions under strain
Between 24 and 26 December 2024, the company was forced to temporarily suspend its operations. Although it suffered no direct attacks, post-election tension led to episodes of vandalism and clashes in nearby communities, which led some 500 workers to remain on the premises for security reasons.
The worsening of clandestine mining, led by organised groups, became another critical point. Stones taken from these illegal areas are often exported through parallel channels, draining the official circuit and compromising tax revenue.
Falling prices at auctions
Even with the number of auctions maintained, prices per carat fell significantly. The scarcity of premium rubies – the most highly valued – weighed directly on revenue. MRM emphasises that the international situation, still weakened by economic and geopolitical crises, aggravated the fall in demand.
Investment and modernisation as a response
In the face of the slowdown, MRM is going ahead with new infrastructure investments, notably the opening of a second processing plant (PP2) planned for later this year. The new facility is expected to triple production capacity, from the current 200 to 600 tonnes per hour, which will make it possible to clear accumulated stockpiles and exploit new areas with untapped potential.
Call for reforms and a crackdown on the illegal market
The company reiterates the urgent need for legislative reforms, advocating the criminalisation of the export of rough rubies by entities without legal concessions. It also calls for more robust action by the State against smuggling, stressing that protecting the value chain – from extraction to sale – is essential to ensure real benefits for local communities.
“It is essential to ensure that natural resources translate into tangible benefits for communities. To do that, it is necessary to control the entire value chain, from production to sale”, says MRM.
For the mining company, social stability, local development and investor confidence are key to Mozambican rubies recovering their prestige in the global market.
