British firm to pay $7.6m compensation to Mozambicans

British mining company Gemfields agreed to pay 7.6 million dollars (5.8 million pounds) to settle claims brought by 273 Mozambicans and their families, who say they were the victims of abuse at one of the company’s ruby mines.
“Gemfields confirms today that it has agreed, on a no-admission-of-liability basis, the settlement of all claims brought by English law firm Leigh Day on behalf of individuals living in the vicinity of Montepuez Ruby Mining Limitada’s (MRM) mining concession,” the company said.
Gemfields is the operator and 75 per cent owner of the Montepuez ruby mine.
“The settlement figure is GBP 5.8 million,” said Gemfields, which owns the iconic brand Faberge.
“Gemfields recognised that, in the past, instances of violence have occurred on and around the MRM licence area, both before and after Gemfields’ arrival in Montepuez,’’ they said.
The Mozambicans, many of them artisanal miners or members of local communities, “suffered serious human rights abuses over many years at the hands of the security forces at the Gemfields’ mine in Mozambique,” according to Leigh Day law firm.
“ The claimants alleged that they have been shot, beaten, subjected to humiliating treatment and sexual abuse, unlawfully detained, and/or forced to carry out menial labour,” the firm said when it issued proceedings against Gemfields last April.
The firm also said four families claimed their sons had been shot dead by security forces at the mine.
“The settlement announced today provides significant redress to our clients,” Daniel Leader, Partner at Leigh Day, said in a statement on Tuesday.
“These incidents should never have happened,” he added.