In 2024, Mozambique’s ruby production surged to nearly 4 million carats, a 46 percent increase from the previous year. The government exceeded its target of over 3 million carats early in the year. Notable contributors to this growth include SLR Mining and effective recovery efforts by Moza Minerals and MRM amidst earlier obstacles. MRM anticipates regaining its previous leading market position with strategic expansions planned.
Mozambique’s ruby production experienced a remarkable increase in 2024, nearing 4 million carats, reflecting a 46 percent rise from the previous year. The government successfully exceeded its production target of 3,080,895 carats within just nine months, resulting in a total of 3,145,391 carats by the end of the third quarter. This growth occurred despite initial production challenges in the first quarter, which only contributed 8 percent to the total target, while subsequent quarters demonstrated significant improvements.
The increase in ruby production can be attributed to various factors, notably the robust output from SLR Mining, which was responsible for over 70 percent of the total rubies produced. Despite equipment difficulties at Montepuez Ruby Mining (MRM) and concerns surrounding military instability impacting earlier production, both Moza Minerals and MRM demonstrated considerable recovery through intensive excavation efforts in new, productive areas.
Historically, Mozambique has seen a decline in ruby production over recent years, with outputs dropping from 5 million carats in 2021 to just 2.7 million carats in 2023. The establishment of the Montepuez Ruby Mine in 2011 positioned Mozambique amongst the world’s leading ruby producers, a status further enhanced by strategic acquisitions, such as SLR Mining’s purchase by Fura Gems in 2020.
MRM was recently overtaken by SLR Mining, attributed to the latter’s commissioning of a new processing plant to boost productivity. There are indications that MRM may regain its leading position in the near future, particularly with plans for a second processing plant that would dramatically increase production capacity and contribute positively to the local economy.
Since the initiation of ruby auctions in 2014, MRM has generated substantial contributions to the state, totaling US$257.4 million in taxes and royalties. In 2023 alone, the company paid US$53.2 million in dues and maintained a workforce of approximately 700 employees and contractors, highlighting the mining sector’s role in the national economy.
In summary, Mozambique’s ruby production in 2024 is projected to approach 4 million carats, marking a significant recovery and overcoming previous production hurdles. Strong performances from key mining companies like SLR Mining and strategic enhancements to processing capabilities are vital for this growth. The sector remains a cornerstone of the economy, continually reallocating substantial royalties and creating employment opportunities within the nation.
Original Source: macaonews.org
