(Alliance News) - Gemfields Group Ltd on Thursday reported a "coordinated incursion" at the Montepuez ruby mine in Mozambique, during which 11 people died.
The incursion was conducted by around 800 artisanal miners at the Maninge Nice 3 mining pit. The pit is owned by Montepuez Ruby Mining Ltd, in which Gemfields holds a 75% interest.
The artisanal miners were, according to Gemfields, "seeking ruby-bearing gravels" and began undercutting the mining pit's outer edge, resulting in "several ground collapse incidents" and the deaths of 11 of these miners.
Montepuez Ruby Mining personnel, Gemfields said, "provided humanitarian assistance where possible".
"In addition to notifying the authorities, Gemfields invited members of the Mozambican press and media to visit [Montepuez Ruby Mining] and its surrounding villages to provide first-hand coverage of the activity and to report on the strikingly coordinated nature of the influx and its possible causes. In a subsequent press conference held by the Inspector General of the Ministry of Minerals, Resources & Energy, the involvement of organised networks in ruby smuggling was noted. Mozambican newspaper articles have since cited artisanal miners who claim to have made payments to factions within the Mozambican police in order to gain access to MRM," said Gemfields.
The company noted that the increased presence of the authorities and of the media at the mine and in the nearby area has caused the mining pits, including Minange Nice 3, to be clear of artisanal miners and so daily operations "remain unaffected".
Gemfields noted that Montepuez Ruby Mining has not been mining the Minange Nice 3 pit "for some months" and the pit accounts for less than 10% of total ruby value sold by Montepuez Ruby Mining so far as it contains lower value stones.
"The company continues to work closely with Mozambican authorities to raise awareness among local communities of the dangers of artisanal mining and to assist in tackling ruby smuggling and reduce the risk to, and exploitation of, vulnerable groups by well-organised syndicates," Gemfields said.
Gemfields will float on London's junior AIM market on Friday. In Johannesburg, its shares were up 5.3% at ZAR2.00 in afternoon trading.
By Anna Farley; annafarley@alliancenews.com
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