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Gemfields ruby auction earns 33.5 mln USD

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(Globalpost/GlobalPost)

Gemfields ruby auction earns 33.5 mln USD

MAPUTO, June 19 (Xinhua) -- British mining company Gemfields has announced that an international auction of Mozambican ruby held in Singapore in mid-June generated 33.5 million U.S. dollars, local media reported Thursday.

Less than half of the amount explored was at this month's auction in Singapore, and the total investment in Mozambique from Montepuez Ruby Mining (MRM) has now reached 30 million U.S. dollars, the independent newspaper O Pais reported.

The ruby is explored by Montepuez Ruby Mining Ltd, in Montepuez district, northernmost province of Cabo Delgado, since 2012.

The company is a subsidiary of London-based resources company Gemfields. It had extracted more than 7 million carats of rubies since it began production at 4 sites around Montepuez.

Gemfields CEO, Ian Harebottle, was quoted by the media as saying that the medium price of a carat at the auction was 18.43 dollars. And Gemfields has auctioned 2.03 million carats of rubies.

According to the report, Harebottle said that the money earned from the auction will be sent to Montepuez Ruby Mining Limitada (MRM) in Mozambique, in which Gemfields retains 75 percent.

The main buyer of the ruby was Thailand which has a strong tradition in the ruby trade. Businessmen from Germany, the United States, Israel and India also took part in the event.

Since the start of the operation in 2012, the Montepuez Ruby Mining has created 600 local jobs, according to Harebottle.

The vast majority of workers are Mozambicans living within a radius of 40 km near the sites, most of whom were previously artisanal ruby miners.

http://www.globalpost.com/dispatch/news/xinhua-news-agency/140619/gemfields-ruby-auction-earns-335-mln-usd