JSE-listed gemstone producer Gemfields has halted operations at its Montepuez Ruby Mining (MRM) in northern Mozambique following an attempted invasion of the site by about 200 people the company says are connected to illegal miners in the area.
Gemfields share price is down nearly 40% since September and dropped more than 10% last week on news of the attack.
The invaders set fire to external structures at the mine village as well as a community cash point. A vocational training centre built by the company in the nearby village of Wikupuri was also looted and damaged.
The looted inventory included farming implements that were to be distributed to more than 800 farmers in the area.
Security forces from both the Mozambican police and military protected the mine village using a staged escalation of force, according to a Sens statement by the company.
Two people were declared dead after being shot during the invasion attempt on 23 December.
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