Montepuez Ruby Mining (MRM), which is 75%-owned by Gemfields, has entered into a legally binding agreement with Consulmet to construct an additional processing unit at its ruby mine in Mozambique.
It said that the addition of the second plant will triple MRM's processing capacity from the current 200 tonnes per hour to 600 tonnes per hour, allowing it to process its substantial stockpile, bring additional size and colour variations of rubies to market, and evaluate as well as expand into additional mining areas.
The new processing facility is anticipated to go live in the first half of 2025.
"This is the single largest investment the Gemfields Group has ever made, and it demonstrates our ongoing commitment to the province of Cabo Delgado, to Mozambique, and to our local communities, for whom the creation of new jobs and economic growth are crucial," said MRM general manager Prahalad Kumar Singh.
Gemfields said the deal is a "lump-sum turnkey contract" based on International Federation of Consulting Engineers principles, with MRM's payment responsibilities agreed upon in South African Rands and totalling around $70 million.
At least 30% of this cost will be reimbursed in 2023, 60% in 2024, and the remaining in 2025.
In addition, MRM anticipates a moderate expansion of its mining fleet through 2025, followed by a significant increase in capacity in 2026.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
