Consulting|Consulting Engineers|Engineering|Gemfields|Mining|Resources|Rubies
Consulting|Consulting Engineers|Engineering|Gemfields|Mining|Resources|Rubies

Gemfields to triple processing capacity at Moz ruby mine

The addition of the second plant will triple MRM’s processing capacity from the existing 200 t/h to 600 tonnes p/h

The addition of the second plant will triple MRM’s processing capacity from the existing 200 t/h to 600 tonnes p/h

7th August 2023

By: Cameron Mackay

Creamer Media Senior Online Writer


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Gemstone miner Gemfields’ 75%-owned Montepuez Ruby Mining (MRM) subsdiary has entered into a legally binding contract with specialist engineering group Consulmet to build an additional processing plant at MRM’s ruby mine in Mozambique.

The addition of the second plant will triple MRM’s processing capacity from the existing 200 t/h to 600 t/h, allowing MRM to process its sizeable stockpile, bring to market additional size and colour variations of rubies and to assess and expand into additional mining areas.

The contract is a lump-sum turnkey contract based on industry standard International Federation of Consulting Engineers terms.

MRM’s payment obligations are agreed in South African rands, and equate to about $70-million at recent foreign exchange rates and excluding value-added tax and government levies.

Subject to specified milestones, it is estimated that 30% of this cost will fall in this year and 60% in next year, with the remainder to be paid in 2025.

Further, MRM expects a modest expansion of its mining fleet through 2025, with notable additional capacity being added in 2026.

The new processing plant, funded by cash resources and debt, is expected to become operational during the first half of 2025. 

“This investment constitutes the single-largest investment ever made by the Gemfields group and represents our ongoing commitment to the province of Cabo Delgado, to Mozambique and to our local communities for whom additional jobs and economic development are of pivotal importance,” comments MRM GM Prahalad Kumar Singh.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online




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