Sourcing

Gemfields Agrees to Pay $7.6M to Settle Mozambique Lawsuit

SourcingJan 30, 2019

Gemfields Agrees to Pay $7.6M to Settle Mozambique Lawsuit

The no-admission-of-liability settlement includes the establishment of a system for grievances at Montepuez and creation of community projects.

2018_Gemfields-Mozambique.jpg
A shot of Gemfields’ Montepuez ruby mining site in Mozambique
London—Gemfields has agreed, on a no-admission-of-liability basis, to the settlement of all claims of human rights abuses in Mozambique brought against it by U.K. law firm Leigh Day.

Leigh Day filed suit against the colored gemstone mining company last April, representing a group of Mozambicans living near Montepuez Ruby Mining (MRM) Limitada’s mining concession who alleged they or their relatives were the victims of human rights abuses at or around the mine. Gemfields is a majority stakeholder in the mine.

The claims in the lawsuit included allegations of being “shot, beaten, subjected to humiliating treatment and sexual abuse, unlawfully detained, and/or forced to carry out menial labor.”

Gemfields has maintained throughout that it is not liable for what happened at the site but has recognized that in the past “instances of violence have occurred on the MRM license area, both before and after Gemfields’ arrival in Montepuez.”

It has agreed to pay GBP 5.8 million (about $7.6 million) to settle the case. The money will be distributed among the group and to cover legal costs. (The GBP 5.8 million is split as follows: GBP 4 million will go toward damages for claimants, while the remaining GBP 1.8 million will cover lawyers costs and expenses of the case, which includes paying for medical experts and reports, Mozambican law experts, travel and accommodation, court fees and more.)

Gemfields said in a statement issued Tuesday that the settlement is in the best interest of its stakeholders while it also avoids “tainting” MRM’s relationship with the local community through long and expensive litigation. It also noted that had it succeeded at trial, none of its own, likely substantial, legal costs would have been recoverable from claimants or from Leigh Day.

Gemfields CEO Sean Gilbertson said: “Gemfields and MRM routinely seek ongoing improvement in practices, policies and procedures. We are confident that we have and will continue to set new benchmarks in our sector, particularly in relation to transparency, health and safety, environmental management, training, community affairs, human rights practices, payment of taxes and reporting of production and financial performance.

“We regard this settlement, together with the new community support mechanisms, as a critical step in allowing us to continue to develop our world-class operations at Montepuez in harmony with the local communities.”

In addition to the settlement amount, Gemfields said it would commit at least GBP 500,000 (about $657,000) to provide long-term sustainable benefits, including skills training, to foster growth and employment for the local Ntoro/Namucho community.

The company also has agreed to establish an independent Operational Grievance Mechanism (OGM) to ensure that anyone can bring forward complaints about the mine.

The colored gemstone miner said an independent panel—following the United Nations Guiding Principles on Business and Human Rights—will consider the evidence and determine compensation where applicable.

Leigh Day, which now represents 273 Mozambicans, said in a statement that it acknowledges that Gemfields has taken the claimants’ allegations seriously and has been “proactive and constructive in addressing the wider issues raised by local communities through this case.”

Daniel Leader, partner at Leigh Day, said in the statement: “The settlement announced today provides significant redress to our clients and importantly puts in place a credible and independent mechanism for providing remedy to those we have been unable to represent.

“These incidents should never have happened. However, we commend Gemfields for engaging constructively to resolve this case promptly and for putting in place an independent grievance mechanism.”

Leigh Day attorney Matthew Renshaw told National Jeweler the additional aspects of the settlement—the OGM and community projects—beyond the sum were unusual in such a case and said it is a “credit to Gemfields” that it was open to them.

Under the terms of the settlement and provided Gemfields fulfills its commitment to establish the OGM, Leigh Day will not bring or support any further claims in relation to these Montepuez allegations.

Renshaw said the law firm aims to distribute the funds to the claimants in Mozambique within the next few months.

Editor’s note: This story was updated post-publication to note how the final settlement sum will be divided.
Brecken Branstratoris the senior editor, gemstones at National Jeweler, covering sourcing, pricing and other developments in the colored stone sector.

The Latest

AMNH Beryl
GradingMar 25, 2026
New York’s Natural History Museum, Wiley To Build Minerals Database

Wiley said the project will give scientists worldwide access to the American Museum of Natural’s History renowned mineral collection.

Boochier Flower Puff Campaign
CollectionsMar 25, 2026
Boochier Turns Flower Friendship Bracelets Into Fine Jewelry

The “Flower Puff” collection looks to beaded flower friendship bracelets from childhood, turning the silhouette into nostalgic fine jewelry.

Community for Ethical Jewelry logo
Policies & IssuesMar 25, 2026
Community for Ethical Jewelry to Host Bench Jeweler Shortage Webinar

Set for April 2, the webinar will discuss how the jewelry industry can address the workforce gap.

GIA iD100®
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Lisa Bayer
IndependentsMar 24, 2026
Lisa Bayer, Illustrator and Beloved Member of the Muse Family, Dies at 64

Bayer, founder of Lisa Bayer Designs, is remembered as “a bright light in every room.”

Weekly QuizMar 19, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tiffany & co diamond ring
AuctionsMar 24, 2026
White Diamonds Shine In Christie's Jewels Online Sale

The highest-grossing lot was a Tiffany & Co. ring set with a flawless, emerald-cut diamond of 10 carats.

Tom Heap
WatchesMar 24, 2026
Christie’s Names New Senior Specialist, Watches

Former Sotheby’s executive Tom Heap has taken on the London-based role.

TopImageCrop.jpg
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.

Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.

NYPD robbery media
CrimeMar 23, 2026
NYPD Looking for 3 Jewelry Store Robbery Suspects

The group of women allegedly robbed two Catbird stores and one Gorjana location on the afternoon of March 9.

Georgia May Jagger in Tommy Hilfiger campaign
FinancialsMar 23, 2026
Movado’s Q4 Sales Rise As Demand Grows From Younger Shoppers, Women

Movado CEO Efraim Grinberg noted continued strength in the fashion watch and accessible luxury segments in the U.S.

Marco Bicego Art of Craft Campaign Imagery
TrendsMar 23, 2026
Marco Bicego’s New Campaign Showcases ‘The Art of Craft’

After celebrating 25 years in 2025, the campaign marks a new chapter for the jewelry brand with the message that “Identity Creates Value.”

Couture Time to Watches logo
Events & AwardsMar 23, 2026
These Watch Brands Are Heading to Couture This Year

Couture and Time to Watches announced the watch brands, from big names to independents, attendees will see at the show.

Macy’s New York City Herald Square flagship
FinancialsMar 20, 2026
Macy’s Turnaround Plans Shows Promise, Boosted by Bloomingdale’s

Plus, why Saks Global’s bankruptcy may have given Bloomingdale’s an edge.

Jwaneng Diamond
AuctionsMar 20, 2026
Sotheby's, De Beers Unveil ‘Jwaneng 28.88’ Diamond

The flawless, Type IIa stone is estimated to achieve up to $2.8 million at the auction house’s high jewelry sale in April.

Tiffany & Co.’s Three Jean Schlumberger for Tiffany & Co. Archives Brooches
TrendsMar 20, 2026
‘Frankenstein’ Costume Designer Is Bejeweled In Brooches for Oscars Win

Costume designer Kate Hawley wore three archival Tiffany & Co. brooches, our Pieces of the Week, while accepting her first Oscar.

Women wearing Zales jewelry
FinancialsMar 19, 2026
Signet Jewelers to Close 100 Stores, Shutter James Allen Banner

The jewelry retailer announced changes to its store network and brand portfolio during its fourth-quarter earnings call.

Hand holding shopping bags
SurveysMar 19, 2026
NRF Forecasts 4% Retail Sales Growth in 2026

From a weaker labor market to inflation, NRF Chief Economist Mark Mathews gave insight on what retailers can expect this year.

26.36 carat round brilliant cut white diamond
AuctionsMar 19, 2026
26-Carat Diamond Tops $1M at Auction

The historic stone, which sold at Elmwood’s in London, is the largest white diamond to be offered on the U.K. market in more than a decade.

JCK Rocks Nelly Graphic
Events & AwardsMar 19, 2026
JCK Rocks To Ride With Nelly

Three-time Grammy award-winning artist Nelly is set to perform at the annual event at Tao Beach in Las Vegas on May 31.

Lady Wardington and diamond-clip brooch
AuctionsMar 18, 2026
Collection of the ‘Severely Beautiful’ Lady Wardington Fetches $161K

The model and fashion editor’s gold evening bags were the top lots at the London sale, going for more than $25,000 each.

My Next Question Episode 3 guest Johnny Nelson
PodcastsMar 18, 2026
Episode 3: An Interview With Jewelry Designer Johnny Nelson

Fresh off winning the David Yurman Gem Awards Grant, Nelson discusses the ring that launched his career and his plans for the future.

Lucara blue diamond
SourcingMar 18, 2026
Lucara Recovers Nearly 37-Carat Blue Diamond

The “stunning” Type IIb stone was found via x-ray technology at its Karowe mine in Botswana.

Stuller The Basics of Jewelry
MajorsMar 18, 2026
Stuller Releases New Edition of Jewelry Education Book

“The Basics of Jewelry” has been updated to include modern topics and visuals.

Mark and Candy Udell on stage at the 2026 Gem Awards
Events & AwardsMar 17, 2026
The Best Moments From the 2026 Gem Awards

Held just before the Oscars, the jewelry industry’s big awards show had its share of standout jewelry, gowns, and acceptance speeches.

Winter Tourmaline
SourcingMar 17, 2026
Cruzeiro Mine Debuts ‘Winter Tourmaline’

The Brazilian mine’s new collection features cabochons in soft, muted shades like silver and lilac.

Natalie Portman in Tiffany & Co. Jewelry
TrendsMar 17, 2026
Natalie Portman Is Tiffany & Co.’s New Ambassador

The Academy Award-winning actress stars in Tiffany & Co.’s latest commercial, which debuted Sunday night during the Oscars.

Jean-Marc Duplaix
MajorsMar 17, 2026
Kering Establishes Jewelry Division, Appoints CEO

The organizational change follows Kering’s promise of a transformation after declining sales in 2025.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy