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Gemfields transparent, proactive in rebutting rights allegations

23rd February 2018

By: Martin Creamer

Creamer Media Editor

     

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Coloured gemstones company Gemfields has been transparently proactive in rebutting claims of human rights abuses in Mozambique, where it mines rubies.

“We’ve voluntarily elected to issue this statement,” Gemfields, headed by CEO Sean Gilbertson, commented in a release last week about UK-based law firm Leigh Day filing a claim in the High Court of England and Wales against Gemfields and its subsidiary, Montepuez Ruby Mining (MRM), on behalf of 29 individuals living near the MRM ruby mining licence area, in northern Mozambique.

The company stated in the release to Creamer Media’s Mining Weekly that the court process had not yet started on account of the claim filed not having yet been served on Gemfields or MRM.

Should the claim be served, Gemfields and MRM would vigorously defend themselves against the claim, whether in the English courts or elsewhere, the coloured gemstones company revealed, as part of its commitment to transparency as a member of the Voluntary Principles on Security and Human Rights (Voluntary Principles) and to collaborative principles set by governments, extractive companies and nongovernmental organisations that encourage respect for human rights.

Gemfields noted that a number of the allegations were a repeat of the media coverage of 2015 and 2016 in South Africa, which had been ruled as “inaccurate, false and damaging” by the South African Press Ombudsman, who had ordered that an apology be issued.

Gemfields stated that the human rights training that MRM provided for employees, service providers, Mozambique police and government forces met the Voluntary Principles.

In addition, MRM frequently hosted tours of its operations by international and local press, government officials, nongovernment bodies, gemstone researchers and customers seeking to assess practices at their source of supply.

The claim, filed by Leigh Day, alleges that Gemfields and MRM are liable for human rights abuses that include the deaths and mistreatment of artisanal miners and the seizure of land without due process.

In many instances, the abuses, Gemfields stated, involved the Mozambique police and/or other Mozambique government forces, for which the claim sought to hold Gemfields and MRM liable.

Gemfields recognised that instances of violence had occurred on and off the MRM licence area, both before and after its arrival in Montepuez and that these had often been between rival groups of artisanal miners and their handlers competing for control of territory, or involving security forces, typically in preserving the safety and wellbeing of employees, service providers and members of the local community.

However, where such incidents had occurred, including instances involving its own employees, MRM had taken appropriate steps, working closely with the authorities, including providing humanitarian assistance to artisanal miners and community members.

Gemfields stated that it was working with its legal advisers in England and Mozambique to examine the claim fully and defend its reputation as a supplier of responsibly sourced coloured gemstones.

MRM is the registered holder of a ruby mining concession in the area of about 340 km2, with the wider Montepuez ruby-mineralised area exceeding 10 000 km2.

Gemfields owns 75% of MRM and Mwriti, its Mozambique partner, 25%. Together with other minority partners, Gemfields holds seven further licences in the Montepuez ruby-mineralised area, where MRM began operating in 2012.

Gemfields has for long stated that its aim is to lead a sector, which has historically remained unregulated and largely illicit, by showcasing the benefits of a more systematic, modern and transparent approach to coloured gemstone mining so that the industry becomes more responsible and legitimate, providing sustainable long-term social, economic and environmental benefits for both the country and local communities.

Since initiating operations in February 2012, MRM has provided direct employment to 1 110 people, 95% of them being Mozambique nationals.

The salaries of these unionised workers are reportedly above the national and industry average. This year, MRM is scheduled to equip 600 community members with new skills and jobs to build a resettlement village for 105 families. MRM, which has invested $130-million in the project, had contributed $73-million to the Mozambique government in taxes and royalties by June last year. MRM’s first Mozambique ruby auction in Singapore in 2014 generated revenue of $33.5-million and the eight ruby auctions to June last year generated a combined $280-million.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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