- Workers have been sent home, with only essential services remaining operational until a political agreement is reached
- The opposition leader has ordered the mining companies to halt activities until he takes office in mid-January, and since then, several companies have been targeted by rioters.
By Moztimes
Maputo (MOZTIMES)—Montepuez Ruby Mining (MRM) has temporarily closed one of the world’s top ruby mines, located in Mozambique’s northern province of Cabo Delgado, citing security concerns amid the escalation of post-election violence, a senior manager said.
Rioters attempted to invade part of the mine, leading the company's management to opt for temporary closure. A senior company representative said in an interview that the mine would only be reopened when there is a political agreement between the political players.
The ruby mine is 75% owned by the London-based Gemfields, while operated by local MRM. Since the beginning of the post-election conflict, several attempts to break into the mine have been recorded, but there is no history of the mine being closed.
The closure of the mine highlights how the escalation of post-election violence is affecting Mozambique's economy. MRM is one of the largest companies in terms of tax contribution to the Mozambican state.
Several organised crime groups operate in the region, illegally mining rubies. However, the recent invasion appears to have been fuelled by political conflict.
Other multinational mining companies have abandoned or suspended operations due to the escalation of post-election violence.
The Australian company Syrah Resources, which mines graphite in Balama, in the same province, declared "force majeure" to halt mining operations due to the country's current climate of instability.
Another Australian multinational, South32, which operates the Mozal aluminium smelter on the outskirts of Maputo and is one of the country’s largest taxpayers, is facing challenges due to insecurity. The blocked roads prevent access to neighbouring South Africa and the Port of Maputo.
Another company in trouble is SASOL, a South African petrochemical company that exploits natural gas in Temane, in the southern province of Inhambane, which has reduced its production due to the instability caused by post-election protests.
The Irish company Kenmare Resources, which exploits heavy sands in the northern province of Nampula, has been the target of attacks, including damage and the confiscation of vehicles, which were later returned. The protesters even prevented a plane carrying executives from landing at a local aerodrome, close to one of the world's largest producers of titanium and zircon.
All this is taking place during the protests called by the self-exiled presidential candidate, Venâncio Mondlane, who is contesting the election results that gave a 65 percent victory to the ruling Frelimo Party (in power since independence in 1975) and its presidential candidate, Daniel Chapo.
Mondlane went so far as to say that all mining companies in the country should suspend their activities until 15 January, the day the President-elect is due to take office.
These closures and suspensions of mining companies show that the Mozambican Defence and Security Forces do not have the capacity to protect strategic infrastructures operating in the country. (MT)
