Gold Refining in India to Come to a Grinding Halt

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.

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.

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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.

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