The London-listed mining company Gemfields said it had temporarily halted its ruby mining operation in Mozambique after groups “took advantage” of political unrest to set fire and attempt to invade its site, resulting in two deaths.
Gemfields, one of the world’s largest miners of coloured gemstones, said more than 200 people associated with illegal ruby mining attempted to invade the residential village built by the company next to its Montepuez Ruby Mining (MRM) operation in northern Mozambique on Christmas Eve.
The company, which is incorporated in Guernsey and listed on the London and Johannesburg stock exchanges, said the groups were trying to take advantage of the widespread civil unrest after the controversial and disputed national election.
Gemfields said on Friday that looters set fire to community buildings built by MRM and that security forces, made up of the Mozambican police and the military, protected the residential village in a “staged escalation of force” that resulted in two individuals being shot and killed.
On the same day, a vocational training centre built by MRM, and operated by Mozambique’s Institute for Vocational Training and Labor Studies, in the nearby village of Wikupuri was looted and damaged.
The unrest resulted in Gemfields temporarily relocating some of its more than 500 employees, halting its operation since Christmas Eve. It began a phased return of staff on Thursday.
“Given the company’s priority remains the safety and security of its personnel, a number of people were temporarily relocated to off-site locations given the increased risk profile,” Gemfields said.
“MRM maintained a sizeable presence on site of more than 500 persons across employees, contractors and security components. While MRM’s operations were halted from 24 December, MRM intends to return to normal operations before the end of the year. The company continues to closely monitor the evolving situation and will provide further updates as necessary.”
On Monday, Mozambique’s top court confirmed the victory of the ruling party, Frelimo, in the October election, which caused widespread protests by groups claiming the vote was rigged.
The Constitutional Council has the final say over the electoral process.
At least 130 people have been killed in clashes with police, according to the civil society monitoring group Plataforma Decide.
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The Frelimo party has governed the southern African country since 1975.
Kenmare Resources, which operates a titanium mine in northern Mozambique, has said there have been no material incidents at its operations and no damage to its facilities.
Gemfields owns expansive mining operations including Kagem in Zambia, which produces almost a quarter of the world’s emeralds, as well as the luxury jeweller Fabergé, known for its lavish eggs. In the past, Gemfields has used stars such as the Hollywood actor Mila Kunis as the face of the company.
