Mozambique anticipates a 39% decrease in ruby production this year, down from last year’s 4.4 million carats.
A report from the Ministry of Economy and Finance confirms this decline. The drop will be around 38.83%, according to the data.
Two main factors explain the decline. First, the largest producer, Montepuez Ruby Mining, holds a big stock of rubies.
Second, mining areas for Fura Gems and Gem Rock show low yield potential.
For 2024, the government forecasts a 3% growth in ruby production. If accurate, this would mean more than three million carats next year.
Montepuez Ruby Mining has four licenses in Cabo Delgado province. This area has the world’s largest known ruby deposit, discovered in 2012.
Rubies are among the most valuable gemstones. Mozambique has become a leading producer in recent years.
Last year, Fura Gems found a 55.22-carat ruby in Mozambique. This ruby sold for $34.8 million at a New York auction, setting a new record.
This drop in production shows the challenges of relying on natural resources. Effective management is essential for long-term success in such volatile industries.
Background
The ruby industry in Mozambique is relatively young, with major deposits discovered just a decade ago.
The sector quickly became a key part of the country’s economy. However, the predicted drop in production reveals some vulnerability.
Fluctuations in the ruby market can directly impact Mozambique’s financial health.
The large stock held by Montepuez Ruby Mining could be a strategic reserve. Yet, it could also signal an oversupply that reduces prices.
Furthermore, low-yield mining areas raise questions about sustainability.
In conclusion, careful planning and diversification may be crucial for Mozambique’s ruby industry going forward.