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Gemfields settles R100m Mozambican claim, denies liability

JSE-listed mining company Gemfields announced on [29 January 2019] that it would pay £5.8m (about R100m at current exchange rates), on a no-admission-of-liability basis, to settle claims brought against it by a group of 273 Mozambicans related to a mining concession in northern Mozambique.  

The Mozambicans, represented by English law firm Leigh Day, had argued that they and their relatives were victims of human rights abuses at or around the Montepuez Ruby Mining Limitada’s mine in northern Mozambique, the law firm said it a statement.

Gemfields owns 75% of Montepuez, an open-pit ruby mine, according to its website… 

In addition to the settlement amount, Gemfields will set up an independent operational grievance mechanism to enable community members to lodge complaints more easily, and has committed to creating a new agricultural development and training fund of at least £500 000, or R8.9m at current exchange rates…