Mozambique: the crown jewel of Fura Gems’ portfolio

Mozambique

Chandra Shekhar Singh, Fura Gems’ country head in Mozambique, talks to The Energy Year about expanding the company’s production capabilities in Mozambique and incorporating renewables into the power mix of existing mining operations in the country. Fura Gems is a Dubai-based gemstone mining and marketing company.

Fura has nine mining licences in Cabo Delgado province. What is your current production?
We are producing at a rate of 1.7 million tonnes per year (tpy). However, we’ve identified an opportunity to expand our output and are on track to achieve a rate of 2.8 million tonnes annually by the end of 2024.
This growth is possible because we have addressed a bottleneck in our water recycling processes, which was limiting our output. We installed a state-of-the-art water recycling system with up to 90% recycling efficiency and can now increase the volume of raw materials we feed into the plant.
We carried out the project in collaboration with our mining contractor, Tayanna. By expanding their operations and deploying additional equipment, Tayanna can now provide the volume of mined resources we need to reach our production target.

Where does Fura Gems source the electricity it needs for its operations?
We currently utilise a 12-kilometre transmission line connected to the EDM grid. However, occasional power fluctuations require us to have backup generators at our sites. To limit our dependence on a single source, we are exploring a hybrid power solution that incorporates solar energy and should improve the stability and efficiency of our supply.
To develop it, we are in discussions with Puma Energy and some South African vendors specialising in hybrid power solutions. Our goal is to secure a long-term agreement for 3 MW, which is sufficient to accommodate our growth plans. We seek a partner who would invest in the construction of the plant and sign a 10-year offtake agreement with us at a fixed tariff.

What is the weight of your Mozambican operations within your international business portfolio?
Mozambique is the crown jewel of our portfolio. It is not only our biggest operation but also the group’s largest revenue generator, representing around 65% of the total. Maximising production in Mozambique is a top priority for Fura Gems. The current market conditions for rubies are highly favourable and we are confident they will continue, so we are investing to increase our production capacity as much as possible across our assets.
Everywhere we mine, we prioritise ethical sourcing and responsible business practices. Tiffany is currently conducting social audits of our operations, examining our sourcing and ESG practices. These audits corroborate that our gemstones are ethically mined and are important for the participants in our ruby auctions. We are proud to have completed the first of these audits and invite other top brands to conduct their due diligence.

What steps does Fura Gems take to develop a skilled workforce for its mines?
We have partnered with a technical institute to create a specialised curriculum tailored to our needs that will combine classroom learning with practical training. We recruit fresh graduates from engineering and mining programmes each year, identifying the best candidates for positions within Fura Gems and investing in their development.

Can provide details on the procedures Fura Gems follows to minimise the environmental footprint of its mines?
At Fura Gems, we operate under a comprehensive environmental management plan, adhering to all the regulations outlined in our licence. Minimising our environmental footprint is a primary objective, and we swiftly rehabilitate the areas we mine. Our mines are shallow, typically no more than 15 metres, which allows for a rapid backfilling and replanting process.
Before disturbing any area, we work with the Ministry of Land and Environment to assess the vegetation, which we remove only with authorisation and after paying the required fees. Once our mining operations are complete, we replant the entire area.
More than half of our previously mined land, or 30 hectares out of a total of 50, has already undergone this restoration process. We are exploring the possibility of increasing the density of the vegetation we replant to obtain carbon credits.

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