Gemfields Generates $11M from Montepuez Ruby Auction Amid Rising Illegal Mining Disruptions
Gemfields Reports $11 Million in Revenue from Montepuez Mini Ruby Auction Amid Illegal Mining Challenges
Gemfields generated $11 million in revenue from a mini-auction of rough rubies from Montepuez Ruby Mining (MRM), held via online bidding following viewings in Bangkok, Thailand, from September 29 to October 3.
Of the 33 lots offered, 26 were sold, representing 62% of the total 297,449 carats available. The auction achieved an average realised price of $59.43 per carat.
“This mini-auction primarily featured medium and commercial grades of secondary material from a recently developed mining area in the ‘Maninge Nice’ domain, where our processing activities have been concentrated in recent months,” said Adrian Banks, Gemfields’ Product and Sales Managing Director.
He added, “We are encouraged by both the results and the strong customer engagement, which reflects growing interest in this new material. Seven lots — mostly smaller-size lower-quality grades offered for the first time — remained unsold. As part of the early market discovery process, we will use the feedback from this auction to refine our future offerings.”
The gemstones were mined in Mozambique by MRM, which is 75% owned by Gemfields and 25% by Mwiriti. All proceeds from this auction will be repatriated to MRM in Mozambique, with royalties paid to the government based on full sales prices achieved at the auction.
Gemfields announced it will defer its usual November/December ruby auction to January/February 2026. This decision follows delays in the final commissioning of MRM’s second processing plant, now exacerbated by illegal mining activity.
While commissioning is still expected in October, operations have been materially disrupted in recent days by between 250 and 400 illegal miners daily, sabotaging supply infrastructure.
Gemfields warned that the illicit extraction of rubies from the Montepuez region undermines market prices and reduces Mozambique’s tax revenues from its ruby resources.
The company and MRM continue to work closely with Mozambican authorities to address the illegal mining issue, aiming to safeguard both market stability and the sustainable future of the ruby sector.
