Gemfields’ Montepuez Ruby Mining Limitada (MRM) recently reported that it  has observed “increasing numbers of illegal miner pit collapse incidents in 2019, resulting in the loss of multiple lives”.

MRM said it  responded by providing “humanitarian assistance” in rescue and recovery operations. It also increased on-site signage warning of the dangers of illegal mining; and campaigned to raise awareness among the local communities and government officials to assist in tackling the issue.

The Company also carried out an investigation into the illegal mining activities in the Montepuez area.

MRM found that the vast majority of the researched illegal miners originate from Nampula, some 400 kilometres by road from Montepuez.

“The illegal miners, some of whom are juveniles, are typically recruited by well-financed syndicate leaders or middlemen (based in Montepuez, Pemba and Nampula) who take advantage of poverty and unemployment, enticing their recruits with promises of ruby mining fortunes,” the Company said.

Moreover, the Company discovered, these “illegal miners  (and/or their families) may be asked to make a payment to the syndicates in order to be granted the “opportunity” and be provided by the syndicates with transport to, and food and accommodation in, the Montepuez area”. In cases where aspiring miners cannot pay these fees upfront, “the syndicates offer to provide a loan which the illegal miner is to repay later from his ruby mining activities, thereby placing the illegal miner in debt with the syndicate”, MRM said.

The working conditions in the illegal pits  is considered to be highly unsafe.

Furthermore, MRM states: “Gemstones recovered by the illegal miners must be “sold” via the syndicate to a ‘higher boss’ and the illegal miner receives only a fraction of sums involved.”

The “illegal miners”, who are  indebted to the syndicates and have no spare cash, cannot return home freely. 

“As a result, these illegal miners are effectively bound in modern slavery,” MRM stressed.

“The investigation concludes that these illegal miners are deliberately being put into debt bondage by middlemen and syndicate leaders, who exploit conditions of poverty and unemployment in struggling communities, thereby practicing a form of modern-day slavery,” MR noted. “ In addition, the influx of illegal miners damages the social fabric of local communities due to alcohol and drug abuse, domestic and sexual violence, and environmental problems relating inter alia to village water sources being used and silted for washing ruby bearing gravels.”

MRM declared that it is in touch  with the Mozambican Government,  through the Ministry of Mineral Resources and Energy, the Provincial Government of Cabo Delgado, the Administration of Montepuez District and other Mozambican Government entities “in order to identify the sources of such activities and reduce the risk to, and exploitation of, vulnerable groups”.

The Company expressed its   hope  that the ongoing strategic efforts by all parties concerned will have a positive impact “by targeting the middlemen and promoters of illegal mining activity who operate in local and remote communities, as well as their financiers, who are typically foreign buyers of gemstones”.