RAPAPORT… A mob of 300 to 500 people overran Gemfields Group’s
emerald-exploration operations in Ethiopia on Friday, forcing staff members to
flee.
Employees, contractors and service providers at Web Gemstone
Mining (WGM) were safely evacuated to a town a two-hour drive away, the company
reported Monday. Two WGM team members suffered minor injuries, with the gemstone
producer expecting both of them to recover fully.
“While the motive of the mob remains unclear, it is believed
that they may have been spurred by a faction seeking a portion of WGM’s
license,” Gemfields said. The miner holds an emerald-exploration license
covering 200 square kilometers, and began collecting bulk samples in August
2017.
Gemfields owns 75% of WGM, with the rest belonging to 50
individuals, either personally or through a cooperative of local people, mainly
from the nearby village of Web. Gemfields acquired its stake in the business in
February 2015.
Local authorities have safeguarded WGM’s residential camp
and mine offices, as well as the site that WGM’s contractors used. The
bulk-sampling operation has “yet to be secured,” the company noted Monday.
Ethiopia lifted a national state of emergency on June 5. It declared
the measures in February after a wave of anti-government protests and the
resignation of Prime Minister Hailemariam Desalegn.
Mob Invades Gemfields Site in Ethiopia
The Bottom Line
- Gemfields' Web Gemstone Mining site in Ethiopia was overrun by a mob, leading to the evacuation of employees and contractors.
- Two team members sustained minor injuries; the company expects full recovery.
- The mob's motive is unclear but may relate to demands for a share of WGM’s license, which covers 200 square kilometers.
Summary by Rapaport AI
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