Illegal miners kill two police officers at Gemfields ruby mine

Coloured precious stones miner Gemfields (LON: GEM) (JSE: GML) confirmed on Thursday that two police officers were killed earlier this week during an attack at its Montepuez ruby mine in northern Mozambique.

According to the company, about 40 illegal miners marched on the mine gate on Monday and assaulted officers guarding the entrance. No Gemfields employees or contractors were injured, and the company said conditions on site have since remained calm.

Gemfields said it was informed that the attack may have been linked to an earlier incident involving district immigration authorities investigating suspected illegal immigrants in a nearby village, during which one person reportedly died.

The Montepuez operation, located in Mozambique’s impoverished Cabo Delgado province, hosts the world’s richest known ruby deposit. Despite its economic potential, the mine has long been a flashpoint of tension between security forces and local residents, many of whom are unemployed young people drawn to the area’s lucrative gemstones.

In recent weeks, Gemfields said illegal miners have sabotaged supply infrastructure connected to the mine’s new processing plant, which is in its final commissioning phase.

History of violence

Montepuez has a history of violent incursions and human rights controversies. In 2019, Gemfields paid $7.5 million to settle claims from local families alleging abuses by police and security contractors. The settlement did little to ease hostilities. Months later, more than 800 people stormed the mine, leaving nearly a dozen dead, according to the company. Gemfields also reported that a mob attacked and burned a company vehicle during the unrest.

Operations were again suspended in December last year when over 200 individuals linked to illegal ruby mining tried to invade a nearby residential village.

Shares in Gemfields dropped 1.5% on the news in mid-day trading but recovered shortly after. They were last changing hands at 6.04p, giving the company a market capitalization of 2.3 billion South African rand ($121 million).