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

Vigil for slain Wheat Ridge, Colorado jeweler Peter Damian Arguello
CrimeAug 11, 2025
Man Convicted of First-Degree Murder in Death of Colorado Jeweler

Peter Damian Arguello, a jeweler in the Denver suburb of Wheat Ridge, was found dead inside his store in November 2023.

Lisa Bridge
IndependentsAug 11, 2025
Lisa Bridge to Depart Ben Bridge Jeweler

The retailer, owned by Berkshire Hathaway, is becoming part of the Berkshire Hathaway Jewelry Group with Helzberg.

Bethenny Frankel
Events & AwardsAug 11, 2025
Bethenny Frankel to Give Keynote at CBG’s Experience Show

The Continental Buying Group’s 2025 Tampa Experience Show is slated for Sept. 8-10.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Nora Kühner fashion design consulting trend forecast colors 2027
EditorsAug 11, 2025
The Colors Expected to Be On-Trend in a Couple Years

Associate Editor Lauren McLemore recently attended a fabrics trade show where a trend forecaster shared her predictions for summer 2027.

Weekly QuizAug 08, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Brilliant Earth Jolie Mosaics engagement ring
FinancialsAug 08, 2025
Brilliant Earth’s Q2 Sales Up 3% as Engagement Ring Sales Rise

The company raised its full-year sales guidance while noting it has not yet assessed the potential impact of the latest tariff news.

Jewellers for Hope charity event
Events & AwardsAug 08, 2025
GJEPC’s Jewellers for Hope Celebrates 10 Years of Fundraising

The organization has raised more than $1.3 million for charity since its inception.

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.

Rahaminov Diamonds Emerald-Cut Diamond Bezel Bangle
TrendsAug 08, 2025
Piece of the Week: Rahaminov Diamonds’ Bezel Bangle

The brand’s latest iteration of a bezel-set diamond bangle features clean lines and a timeless design for a new modern silhouette.

Black and white photo of Tony Bennett near a microphone
WatchesAug 07, 2025
Bulova’s New Collection Honors Tony Bennett

The first watch in the series commemorates his participation in the Civil Rights movement, marching from Selma to Montgomery in 1965.

Sapphire page in Chatham’s “Ultimate Lab-Grown Catalog”
Lab-GrownAug 07, 2025
Chatham Releases Catalog for Loose Lab-Grown Gemstones

The catalog contains a complete listing of all the loose gemstones in stock, as well as information about the properties of each stone.

Rembrandt Blue Jay, Hummingbird, Cardinal Bird Charms
TechnologyAug 07, 2025
Rembrandt Charms Debuts New Website, Bird Charms

The company added a retailer dashboard to its site and three new birds to its charm collection, the cardinal, blue jay, and hummingbird.

Shipping containers on a ship
Policies & IssuesAug 06, 2025
Tariff on India to Rise to 50%, Trump Says

An additional 25 percent tariff has been added to the previously announced 25 percent.

Claire’s storefront
MajorsAug 06, 2025
Claire’s Files for Chapter 11 Bankruptcy Again

The jewelry and accessories retailer plans to close 18 stores as part of the proceedings.

Smith & Son Jewelers storefront Springfield Massachusetts
IndependentsAug 06, 2025
Smith & Son Jewelers to Close 107-Year-Old Location

Its Springfield, Massachusetts, store is set to close as owner Andrew Smith heads into retirement.

Zahn-Z Beluga Spout Grey Spinel Ring and Beluga Spout Mandarin Garnet Ring
CollectionsAug 06, 2025
Zahn-Z Swims With Whales in ‘Beluga’ Collection

Designer Hiba Husayni looked to the whale’s melon shaped-head, blowhole, and fluke for her new chunky gold offerings.

Paola De Luca presenting Trendbook 2026+ at Vicenzaoro
TrendsAug 06, 2025
Paola De Luca to Release Trendbook 2027+

She will present the 23rd edition of the trend forecasting book at Vicenzaoro on Sept. 7.

Omar Roy mugshot
CrimeAug 05, 2025
Report: Suspect Arrested in 1992 Murder of Miami Jeweler

Omar Roy, 72, was arrested in connection with the murder of jeweler Dionisio Carlos Valladares.

Mignon Faget Beyond Katrina Pendant and Beyond Katrina Pin
CollectionsAug 05, 2025
Mignon Faget Commemorates 20th Anniversary of Hurricane Katrina

The New Orleans-based brand’s “Beyond Katrina” jewels honor the communities affected by the storm.

National Jeweler columnist Lilian Raji
ColumnistsAug 05, 2025
The PR Adviser: Affiliate Marketing Is the Cost of Coverage

Lilian Raji explains why joining an affiliate network is essential for brands seeking placements in U.S. consumer publications.

Jewelers of America Logo
Events & AwardsAug 05, 2025
JA Announces Seymour & Evelyn Holtzman Bench Scholarship Winners

The organization has awarded a total of $42,000 through its scholarship programs this year.

2026 Gem Awards logo
Events & AwardsAug 04, 2025
Gem Awards, David Yurman Introduce $50K Grant for Emerging Designers

The winner of the inaugural David Yurman Gem Awards Grant will be announced live at the 2026 Gem Awards gala.

Marlo Laz peridot and diamond Alexandra earrings
TrendsAug 04, 2025
Amanda’s Style File: August’s Bright Baubles

As summer winds down, celebrate the sunny disposition of the month’s birthstones: peridot and spinel.

Surveillance image of Watch King robbery suspect
CrimeAug 04, 2025
‘The Watch King’ Assaulted, Robbed in Queens

Moshe Haimoff, a social media personality and 47th Street retailer, was robbed of $559,000 worth of jewelry by men in construction outfits.

Xavier Dibbrell
MajorsAug 04, 2025
Borsheims Welcomes New Assistant Facilities Manager

Xavier Dibbrell brings more than a decade of experience to the role.

Signet Jewelers logo
MajorsAug 01, 2025
Helzberg President Julie Yoakum Moves Over to Signet Jewelers

The addition of Yoakum, who will lead Kay and Peoples, was one of three executive appointments Signet announced Thursday.

Mike Alexander
MajorsAug 01, 2025
Jewelers Mutual Names Mike Alexander as President

The insurance company’s previous president and CEO, Scott Murphy, has split his role and will continue as CEO.

×

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