Metal Price
Scrap Monster
Vulcan
Gold September 25, 2019 09:30:44 AM

Gold Refining in India to Come to a Grinding Halt

Paul Ploumis
ScrapMonster Author
The gold dore imports into the country have witnessed sharp fall from a monthly average of around 23 tonnes during the first half of the current year to just around 3-4 tonnes from July onwards.

Gold Refining in India to Come to a Grinding Halt

SEATTLE (Scrap Monster): The imposition of higher duty on gold imports has badly impacted gold refiners in India. It must be noted that these refineries were previously allowed to import dore gold at lower import duty rates under the ‘Make In Initiative’ by the government of India.

According to industry sources, many refineries in the country have stopped operations, as their businesses have become unviable following increased duty on imports. Only a few refineries, including the MMTC-PAMP, are currently operating. The declining demand for gold may lead to closure of these operations soon. Consequently, the refining business in the country will come to a complete halt, they said. Incidentally, the gold refineries in the country are responsible for supply of nearly 45-50% of gold in domestic market. Moreover, they offer employment to hundreds of workers as well.

ALSO READ: IGPC Puts Forward Proposals to Ramp Up Country's Gold Sector

James Jose, secretary, Association of Gold Refineries and Mints noted that bullion refineries in India are struggling hard to stay afloat.

The gold dore imports into the country have witnessed sharp fall from a monthly average of around 23 tonnes during the first half of the current year to just around 3-4 tonnes from July onwards. The supply of fine gold by refiners too have recorded heavy decline during July-Sep ’19.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox
Facebook Twitter Linkedin Instagram