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

Lewis Heyman
MajorsJul 18, 2025
Lewis Heyman on Sourcing Gemstones, Post-Retirement Plans

He retired last month after 28 years traveling the world to source the very best gemstones for his family’s jewelry business, Oscar Heyman.

CCWW Designs Multiple Shell Charm Necklace
TrendsJul 18, 2025
Piece of the Week: CCWW Designs’ Shell Charm Necklace

The charm necklace features six nautical charms of shells and coral that founder Christina Puchi collected on Florida’s beaches.

The Plumb Club board members
MajorsJul 18, 2025
Plumb Club Elects New Board Members

The organization elected its youngest vice president as it looks to draw in fresh talent.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Jewelry industry veterans Brad Campbell and John Liebler
TechnologyJul 18, 2025
Brad Campbell, John Liebler Join Clientbook’s Executive Team

Campbell joins the company as vice president of business development while Liebler is the new vice president of operations.

Weekly QuizJul 17, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Silver, Gold, and Bronze Medals for Italy Olympic Winter Games
CollectionsJul 17, 2025
2026 Winter Olympic Medal Design Symbolizes Unity

The medals feature a split-texture design highlighting the Games’ first time being hosted by two cities and the athletes’ journeys.

vimeo screenshot.png
Supplier BulletinJul 17, 2025
The INSTORE Jewelry Show 2025: Your Holiday Preparations, All Wrapped Up!

Sponsored by The INSTORE Jewelry Show 2025

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Guinness
SurveysJul 17, 2025
The Most Recommended Brands in the World, According to YouGov

Globally, travel and transportation brands reigned, while in the U.S., alcoholic beverage companies and a lingerie brand took the top spots.

Gina Ferranti
IndependentsJul 17, 2025
Gina Ferranti of GiGi Ferranti Jewelry Dies at 59

The Brooklyn-based jewelry designer is remembered as a true artist and a rare talent.

Jewelers of America Learning Workship Logo
Events & AwardsJul 17, 2025
JA to Hold Learning Workshops This Fall

A new slate of Learning Workshops will take place in Oklahoma, Mississippi, and Georgia.

Gold bracelets and bangles
SurveysJul 16, 2025
Signet Jewelers Falls Lower on NRF’s ‘Top 100’ Retailers List

The middle class is changing its approach to buying jewelry and affordable luxury goods, the NRF said.

Buccellati Opera high jewelry bracelet
FinancialsJul 16, 2025
Richemont’s Jewelry Sales Up 7% in Q1

It marks the third consecutive quarter of growth for Cartier, Van Cleef & Arpels, Buccellati, and Vhernier.

Rolex Datejust ref. 16233
WatchesJul 16, 2025
The Top-Selling Rolex Models of the Last 15 Years, According to Bob’s Watches

The reseller’s market trends report, based on its sales data, also shows exactly how much Rolex prices have jumped since 2010.

Jean Dinh Van Orgue Ring
AuctionsJul 16, 2025
Christie’s To Honor Dinh Van With Exhibition

The auction house will be hosting a retrospective paying tribute to jeweler Jean Dinh Van and his company’s 60th anniversary.

Jake Duneier and Danielle Duneier
IndependentsJul 16, 2025
Clyde Duneier Ushers In Fourth Generation

Jake Duneier and Danielle Duneier-Goldberg have stepped into the roles of CEO and president, respectively.

Boucheron Impermanence Boucheron Dragonfly Earrings and Wisteria Hair Piece
CollectionsJul 15, 2025
Boucheron’s New High Jewelry Calls Attention to Nature’s Impermanence

The “Impermanence” collection contemplates nature through the Japanese art of Ikebana (flower arranging) and philosophy of wabi-sabi.

James Avery Cedar Park
MajorsJul 15, 2025
James Avery Expands to 2 More States

The Texas-based jewelry retailer has set up shop in Tennessee and Arizona.

Eric Ford, Couture’s new brand director and former fine jewelry buyer at Neiman Marcus
Events & AwardsJul 15, 2025
Neiman Marcus Vet Joins Couture as Brand Director

Eric Ford will step into the role, bringing with him decades of experience.

Bench jeweler holding a ring and a tool
MajorsJul 15, 2025
Ben Bridge Jeweler Acquires Olympic Manufacturing

In addition to improved capabilities, the acquisition will allow the jeweler to offer support to other independent jewelers.

Guzema Celestial Blue
CollectionsJul 15, 2025
Guzema Debuts First Colored Gemstone Jewelry

The “Celestial Blue” capsule collection campaign features Olympian Kateryna Sadurska.

Nanis Mykonos Store Exterior and Interior
MajorsJul 14, 2025
Nanis Opens First Store

The seasonal store, located in Mykonos, Greece, offers exclusive events, personal styling, and curated experiences.

Long’s Jewelers Summer of Love promo
IndependentsJul 14, 2025
It’s the Summer of Love at Long’s Jewelers

The New England jeweler is hosting a bridal event for the month of August.

The Edge and The Edge Retail Academy Logos
Events & AwardsJul 11, 2025
The Edge’s Annual Conference Returns in September

Its sessions will focus on inventory strategies, staff performance, retention and acquisition, emerging market trends, and more.

Miseno Arco Earrings
CollectionsJul 11, 2025
Piece of the Week: Miseno’s ‘Arco’ Earrings

For its 10th anniversary, Miseno designed the “Arco” earrings based on the Arco Felice, an arch conceptualized in A.D. 95 in Miseno, Italy.

James Avery Texas charm
Policies & IssuesJul 11, 2025
James Avery to Donate $1M to Texas Hill Country Relief Efforts

The jewelry company is one of several contributing to relief efforts in the region after the recent floods.

Kelly Osbourne Engagement Ring
TrendsJul 11, 2025
Kelly Osbourne’s Engagement Ring Is Sweet as Honey

Inspired by fiancé Sid Wilson’s nickname for her, the white and yellow diamond ring features a unique honeycomb design.

×

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