MRM generates $2.3 million at auction, but worker mistreatment persists in Namanhumbir
Montepuez Ruby Mining (MRM), operating in the administrative post of Namanhumbir, Montepuez district, Cabo Delgado province, northern Mozambique, earned $2.3 million at its latest auction from the sale of rubies, sapphires, and corundum.
According to an MRM statement, the company, in an auction held last week from Monday to Wednesday in Thailand, sold all 5.7 million carats (1,130 kilograms), divided into 10 lots, at an average price of $0.41 per carat.
However, despite the company's financial success, MRM continues to violate workers' rights in the region, with reports of unfair dismissals at the Namanhumbir mine. Last June, reliable sources confirmed that six employees were suspended after receiving formal notices, eventually leading to their expulsion from Montepuez Ruby Mining (MRM). Internal sources claim the six workers were accused of leading a strike on March 28, 2023, which involved over 300 mine workers.
The disciplinary process followed an inquiry conducted between April 15 and May 2, 2023. "Until the inquiry was completed, the employer did not know who was responsible. This lack of clarity was due to the chaos during the strike on March 28, 2023, when the employer was focused on resolving the situation," a source reported.
A company document accused the workers of blocking the access road to Megaruma Mining Lda, obstructing an ASCENDING bus, removing keys from a vehicle transporting ASCENDING employees, and threatening the staff.
However, sources claimed that not all accusations were true. "Yes, a supervisor's car keys were taken, but the other accusations are false. They want to expel a large portion of the workforce," a reliable source revealed at the time, noting that these actions were taking place under the indifferent gaze of Mozambican authorities, while MRM continued to profit, disregarding the well-being of its workers.
Montepuez Ruby Mining is 75% owned by British company Gemfields and 25% by its Mozambican partner, Mwiriti Limitada.
The report on the recent auction's earnings highlights an $800,000 increase compared to a previous similar operation.
"The proceeds from this auction will be fully repatriated to MRM in Mozambique, with all royalties owed to the Government of the Republic of Mozambique paid on the total sales prices achieved at the auction," stated Gemfields' Product and Sales Director, Adrian Banks, as quoted in the document.
Despite the commercial nature of these goods, the auction saw strong business activity and robust demand. "The significant volume of rough products sold at lower prices will support cutting factories in Chanthaburi, Thailand, and Jaipur, India," Banks added.
Despite the international significance of Mozambican rubies, the Rural Environment Observatory, a civil society organization advocating for the interests of local communities, stresses that the exploitation of natural resources has not translated into significant benefits for the population, particularly in terms of access to water, sanitation, healthcare, education, housing, or property ownership in Namanhumbir.
