Africa-focused Gemfields (LSE: GEM; JSE: GML) warned on Wednesday that insurgents attacks are edging closer to its ruby mine in Mozambique's northern Cabo Delgado province but said operations had not been halted.
An Islamic State-linked insurgency broke out in October 2017 in Cabo Delgado, a coastal province rich in natural gas reserves and host to an estimated US$60 billion worth of international investment in gas projects.
The violence has so far left at least 3,100 dead, according to the Armed Conflict Location & Event Data Project (ACLED), which tracks political violence around much of the world.
Conflict there also has displaced nearly 856,000 people, nearly half of them children, according to UNICEF.
Gemfields said the latest attack hit the Muaja village, which is about 30km by road from its Montepuez ruby mine. A previous incident last month occurred about 65 km east-northeast from the operation, in which the company holds a 75% interest.
"A large number of people are reportedly relocating to Nanhupo and Namanhumbir, where the mining operations are located," Sean Gilbertson, CEO of Gemfields, said in a statement. "Given recent developments and the associated security review, operations continue with increased vigilance," he added.
Violence has affected other miners in the region recently. In June, Australia's Triton Minerals (ASX: TON) reported an attack on its Ancuabe graphite project site. Syrah Resources (ASX: SYR) briefly suspended logistics and staff movement at its flagship Balama graphite operation due to assaults close to its primary transport route.