Half of demand in India this year from home refineries

In the third quarter of 2018, the country’s import of unrefined gold (dore) was its highest ever at 89.8 tonnes, since India started refining gold a few years earlier. This is double the dore imported in the same period last year.

After implementation of the goods and services tax, refining disparities have been nullified and the industry is actively pursuing with global gold mining companies to ensure supplies.

James Jose, secretary, Association of Gold Refineries and Mints says: “In 2018, India will be meeting 50 per cent of the domestic demand by gold refined in India. Last year, we met 40 per cent of domestic demand.”

Last year, India’s gold jewellery demand was a little over 600 tonnes. Dore import was 250 tonnes. In 2018, the import was 218.7 tonnes in the first three quarters; demand was 419 tonnes.

So far, dore was largely imported from Ghana and the US. Import rose from Peru in the September quarter, after some issues with import from Ghana.

Last month, a delegation of gold refineries visited Peru and met their minister in charge and several mining companies, in search of long-term supply contracts; quite a few of these are being finalised.

America is another dore supplier, with the MMTC-PAMPS refinery having a big long-term dore supply deal with mines there.