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Mozambique is scheduled to hold its first international ruby auction on its own territory on October 23 in the northern port city of Nacala, as the government seeks to develop a domestic gemstone trading and processing industry.
Mining company FURA Gems has confirmed its participation as a seller, offering rubies from its Montepuez operations in Cabo Delgado province. Four lots are expected to be offered at the event, with at least four companies having expressed interest by October 22, Portuguese news agency Lusa reported, citing government officials.
The quantity and composition of the offering remain uncertain. Lusa reported that the government had identified 3kg of rubies and corundum for sale, while Mozambican newspaper Notícias reported 30kg. Ruby is a variety of corundum, but not all corundum qualifies as ruby. Neither the discrepancy in volumes nor the precise composition of the lots has been independently reconciled with an official auction catalogue.
The auction forms part of the Conference on Adding Value to Mineral and Energy Resources (CAVAME-d) and the eighth Nampula Annual Gem Fair (FAGENA). Mineral Resources and Energy Minister Estêvão Pale inaugurated the gemstone exhibition associated with the events.
The government has separately authorised auctions of confiscated minerals, including rubies, tourmalines, aquamarines, garnets, topaz, tantalite and gold seized in operations against illegal mining, during the October 19–24 events in Nacala. Those sales are distinct from FURA’s commercial offering, and their quantities and proceeds should not be combined.
The expected proceeds from the ruby auction have not been disclosed. A source familiar with the arrangements told Notícias that lots would remain unsold if bids failed to meet sellers’ expectations.
Pale encouraged mining companies to hold auctions in Mozambique rather than relying exclusively on international trading centres, while stressing that overseas sales would not be prohibited.
“Let auctions also be held in the country, so that the people can see the value, potential and transparency of the process,” Pale said, as quoted by Notícias.
He also urged companies to process gemstones domestically and said the government intended to develop a distinct brand for Mozambican rubies.
President Daniel Chapo has proposed developing Nacala into an international gemstone trading centre, including through annual ruby auctions intended to attract foreign buyers and investors.
The initiative forms part of Mozambique’s broader industrialisation strategy, which seeks to capture more economic activity from mineral processing, gemstone cutting, certification and jewellery manufacturing rather than relying principally on exports of unprocessed materials.
Mozambique amended its mining legislation in June to require a minimum 15% free-carried state stake in mining ventures and to prohibit exports of unprocessed or semi-processed minerals unless approved by the mining minister and linked to plans for domestic beneficiation. The Mozambique Chamber of Mines warned that the state-stake requirement could deter foreign investment.
Mozambique is already a major ruby exporter. Gemfields Group (AIM: GEM; JSE: GML), which owns 75% of Montepuez Ruby Mining (MRM), generated $52mn from a separate international ruby auction held from October 5 to 16, selling 92,153 carats through in-person viewings in Bangkok and an online bidding platform.
National ruby production rose 61.4% year on year to 3.18mn carats in the first half of 2026, after reaching 5.10mn carats in 2025, according to government data. The government says about 70% of output is currently exported.
Montepuez has nonetheless struggled with lower premium-grade recoveries, which fell to 0.025 carats per tonne in the first half, prompting Gemfields to book a $125.2mn impairment on the mine. The company has also cited heavy rainfall, processing-plant commissioning problems, security disruptions and about 700 illegal miners entering the concession each day.
Gemfields said the proceeds would be fully repatriated to MRM in Mozambique, with government royalties payable on the full sales value. Holding auctions domestically would therefore not automatically increase export receipts or royalties, although it could generate additional business for local trading, logistics and related services.
Gemfields says MRM paid 23% of its revenue to the Mozambican government in royalties, corporate tax and dividends in 2025.
Developing a domestic cutting and jewellery industry would require further investment, technical skills and processing capacity beyond those needed to host auctions.
Officials have not disclosed confirmed sales, proceeds, new processing investments or commitments to establish domestic gemstone-cutting facilities.
The immediate test will be whether the October 23 auction attracts successful bids, followed by whether Mozambique can establish sustained domestic gemstone trading and processing activities.
See IntelliNews: Mozambique miners group warns nation’s new local ownership rule could deter investment
See IntelliNews: Mozambique ruby output jumps 61% in H1 despite producer constraints
See IntelliNews: Mozambique ruby weakness drives $125.2mn Gemfields impairment
See IntelliNews: Gemfields raises $52mn from Mozambique ruby auction despite lower sales volumes
See IntelliNews: Gemfields asserts commitment to transparent operations in Mozambique, Zambia