(Bloomberg) -- About 300 people on Sunday invaded a pit at Gemfields Group Ltd.’s ruby mine in Mozambique, which accounts for about half the world’s supply of the stones, Executive Officer Sean Gilbertson said. Two people were shot and injured by police, he said.
A crowd of about 500 people later gathered at a village near the Montepuez ruby mine in northeastern Mozambique intending to enter the mine, Gilbertson said by text message. Ruby-smuggling syndicates had ignited a disinformation campaign earlier that the company “opened its mine for mining by anyone” for 24 hours when it hadn’t, he said.
“This campaign is fake” and was promoted by ruby-smuggling syndicates, the company said in a statement. “Two people suffered firearm injuries when police responded to escalating aggression.”
Gemfields shares fell 2.5% by 10 a.m. in Johannesburg on Monday.
Sign up for the twice-weekly Next Africa newsletter for the latest business and economic news from the continent.
The company has faced repeated incursions at the mine site, located in one of Mozambique’s poorest regions. In 2019, the company reached a settlement over allegations of human-rights abuses around the operation. It didn’t admit liability.
Political tensions have been high in Mozambique since the Oct. 9 general election. Multiple observer organizations have raised questions over the credibility of the nation’s election process.
Opposition leader Venâncio Mondlane, 50, has called for street protests on Monday after his legal adviser, Elvino Dias, was gunned down by unknown gunmen.
At a Sept. 29 campaign rally in Montepuez, Mondlane brought a populist message, saying that only foreign companies won licenses to exploit the gems, and locals gained nothing from the resources. Artisanal diggers should get permits, he said to cheers.
Montepuez Ruby Mining’s security personnel, including police officers assigned to protect the concession, attend mandatory human-rights training, Gemfields said.
(Updates with shares falling in fourth paragraph.)
©2024 Bloomberg L.P.