How would you describe MRM’s commitment to development and sustainability in Mozambique?

MRM is deeply committed to the development and sustainability of Mozambique. We operate the Montepuez ruby deposit in Cabo Delgado, with 75% ownership by Gemfields and 25% by Mozambican company Mwiriti. Our belief is that rubies belong to Mozambique, and we strive to structure the gemstone industry in a way that maximizes the country’s profits while bringing in the maximum amount of money. We see ourselves as the guardians of Mozambique’s rubies, operating responsibly, transparently, and ethically. We involve the government in all processes, contribute positively to the national economy, and take a leading role in modernizing the colored gemstone sector and building sustainable livelihoods for our communities.

How has MRM contributed to the development of Mozambique through its CSR initiatives?

Since the beginning of our operations, MRM has invested a total of USD 241 million as part of our commitment to corporate social responsibility (CSR) and the development of Mozambique. A significant portion of this investment has been directed towards community development projects. We have established schools with a combined capacity of 2,000 students and funded the vocational training of 2,100 local youths. Additionally, we provide two mobile clinics that offer medical services to 10 local communities and support farming associations for 400 farmers. We also contribute to biodiversity conservation in Quirimbas National Park and the Niassa National Reserve. Furthermore, we have committed USD 7 million to the development of the RAP village, which involves the resettlement of 105 families from Nthoro village, to mitigate the negative consequences of our project. Despite the challenges posed by the COVID-19 pandemic, we remain committed to completing this project, albeit with a potential delay in the handover to July 2020.

How do rubies extracted in Mozambique stand out on a global scale?

The discovery of rubies in Mozambique in 2009 was a gamechanger. Mozambican rubies, formed approximately 500 million years ago, span all known color ranges and include the rarest pure fluorescent reds. This uniqueness has propelled Mozambique to become the world’s number-one ruby exporter. The consistency and transparency of supply from Mozambique have instilled renewed confidence in rubies, especially after the US-led bans on rubies from Myanmar in 2008. High-end jewelry brands now have access to fine rubies from Mozambique, enabling them to create extraordinary collections they would typically spend years collecting.

How does MRM mitigate social tensions that lead to disorders and illegal mining?

In February 2020, MRM witnessed episodes of disorders and illegal mining, which sometimes resulted in fatalities. We work closely with Mozambican authorities to raise awareness among local communities about the dangers of artisanal mining. We also collaborate to tackle ruby smuggling and reduce the risk and exploitation of vulnerable groups by well-organized syndicates. MRM has taken steps to reduce illegal mining activity by providing humanitarian assistance in rescue and recovery operations and promptly reporting accidents to stakeholders at various levels. We have increased on-site signage to warn against illegal mining and conducted awareness campaigns among local communities and government officials.

How has the COVID-19 crisis affected MRM’s strategy?

The current COVID-19 pandemic has undoubtedly impacted MRM’s financial performance in 2020. Travel restrictions have necessitated the rescheduling of the mixed quality auction initially planned for June 2020. As a result, there may be a single auction in the fourth quarter of 2020. We have suspended all but critical operations at MRM since April 22, prioritizing the well-being of our employees and communities. Essential services, such as security and maintenance, continue to ensure that we can resume normal operations safely and practically. Expansionary capital expenditure, including the construction of the second treatment plant, has been temporarily suspended.

What are MRM’s objectives for 2020?

Prior to the COVID-19 pandemic, our objectives for 2020 were to increase carat production from 2,260.7kcts in 2019 to 5,400kcts, participate in more auctions, and increase our staff members to 709 by December 2020. Our long-term vision is to be the global leader in precious colored gemstones, promoting transparency, trust, and responsible mining practices. As a young and dynamic company, we support raw emerging talent and strive to maintain a balanced approach between people, profit, and the environment.