Sean Gilbertson

THE poor social climate at villages near Gemfields’ Montepuez Ruby Mine in northern Mozambique’s Cabo Delgado was sent to a new level following the controversial re-election of Frelimo’s Daniel Chapo as the country’s president in October. Spurred on by opposition leader Venâncio Mondlane, violent protests erupted against Frelimo, which is suspected to have rigged the national election. The riots resulted in more than 270 deaths in Mozambique. On Christmas Eve, Montepuez was closed as protests reached the mine village, leading to two fatalities. 

It's tough on Gemfields, which has previously fought a battle against illegal mining problems at Montepuez. What’s more it comes at a tricky time for Gemfields CEO Sean Gilbertson, who has been looking for a market bounce in rubies as well as emeralds. So poor is the emerald market currently that Gilbertson also mothballed production at its Kagem mine in Zambia for six months. Kagem will process stockpiled ore through its recently expanded plant. 

The good news is that Montepuez is up and running again. It is a strong cash flow generator which will only be helped by the $70m tripling of processing capacity expected to be completed at the mine by mid-year. Gilbertson remains hopeful, saying, “There is considerable scope for exciting growth in our business from the second half of 2025.” He can draw on the 18-month period during the Covid pandemic when Gemfields survived an absence of cash flow.