This content was first published on IGR – Italian Gemological Review no. 6 in 2019. The information provided here is therefore current as of the original publication date.
“Gemfields confirms today that it has agreed, on a no-admission-of-liability basis, the settlement of all claims brought by English law firm Leigh Day on behalf of individuals living in the vicinity of Montepuez Ruby Mining Limitada (MRM) mining concession in northern Mozambique. The settlement figure is GBP 5.8 million comprising the sum to be distributed to the claimants by Leigh Day and their legal expenses”.
These words open an official statement of the mining company released on January 29, 2019 announcing the settlement of the case brought in the London High Court in April 2018 and asserting serious abuses resulting in 273 claims including 18 people allegedly killed by mine security forces or Mozambican police.
95 additional property claims are reated to an alleged displacement strategy to force local communities out of Namucho-Ntoro village. IGR Italian Gemological Review has given in issue n° 4 a detailed account of the violence reportedly occurring in the ruby rich Montepuez area, firstly investigated by Al Jazeera in 2015 and by Estacio Valoi, an important Mozambican journalist with the Responsible Journalism Association 100Reporters.
From its side Leigh Day in a statement “acknowledges that Gemfields has taken the claimants’ allegations seriously and has been proactive and constructive in addressing the wider issues raised by local communities through this case. Gemfields has agreed to […] the establishment of further community projects to improve the long term agricultural productivity and livelihoods of residents of Ntoro/Namucho”. Gemfields has also agreed to establish an independent and internationally supervised Operational Grievance Mechanism to allow any future complaint arising from local people against the mining company to receive immediate remedy.
This fast settlement of the case reveals how crucial is the issue of responsible gemstone mining and how important an undisputed compliance to fair practices with local community can be. Establishing ethical procedures is not an easy job especially when large international companies break in territories characterized by endemic backwardness. Economic figures of Mozambique show an extremely weak condition (pro capita GDP equals to 634$ in 2012) due to the dependence on agriculture (83% of workers), the outflow of capitals abroad and to a long period of instability resulting in social imbalance. The promising mining sector besides Montepuez rubies includes since 2012 deposits of natural gas discovered along the coast (estimated reserves for 20 billion barrels) and is largely controlled by political elites.
There is one more reason for foreign investors to keep cooperative and relaxed relations with northern communities in Cabo Delgado province. Limitations imposed to artisanal ruby miners and scarcity of employment provided by the new and future mining operations could push young people, marginalized by the huge mining concessions, in the arms of insurgent Islamic militants active in the area and reportedly offering jobs and money. Killings and disruptive attacks are increasingly affecting the province surrounding the ruby deposits.
Gem News published on IGR – Italian Gemological Review #6 – Spring 2019
