Page 24 - Bullion World Volume 02 Issue 08 September 2022

Bullion World | Volume 2 | Issue 09 | September 2022

Mr Philip Newman: Can you please explain about Excerpts of Online Speech
Gold Strom FATE model? by Mr David Gornall
Mr Ramkumar Chandrasekharan: Foundry, Senior Consultant, LBMA
Analysis, Trade, and Export (FATE). We have a formal
onboarding process for any mine. It involves KYC, Congratulations to all the
mine-site visits, and an analysis of the challenges stakeholders for making IIBX
faced. It is not only for mines but also for aggregators go live. The launch of the
and export licensed holders. It can be adapted for exchange marks an important
refiners and also for miners from other countries. milestone which reinforces
India’s position as the major consumer of gold apart
We plan to expand the model to the rest of west Africa. from providing greater and wider market access.
We plan to move to Indonesia in 2023. Bringing the consumer and suppliers under the
regulated exchange framework would transform IIBX
Mr Philip Newman: Minister, you mentioned about as an official marketplace.
Minerals Commission and Alternative Livelihood
project. Could you please elaborate? It is worth mentioning that this is the first time that any
gold exchange has introduced pre-funded metal and
Hon. Dr Kwabena Okyere-Darko Mensah: Minerals currency accounts in order to bring about the idea of Sovereign Metals Limited is in the
Commission is responsible for the regulation and the same day based settlements. LBMA hopes to have business of refining precious metals
management of mineral resources. Alternative a second London Good Delivery refiner along with a (gold and silver) and supplying
livelihood projects are programs to support small-scale bullion bank that participates in gold auctions which highest and most consistent quality
miners. There is a lot of informality in the ASM sector. is yet to be realized. After receiving and reviewing products and related services and
As a result, traceability is a challenge. Bank of Ghana’s the feedback from potential refiners on non-technical solution to customers at their place
gold purchase program is one of the formalization eligibility criteria for LBMA London Good Delivery of convenience by leveraging its
programs to support ASM. As you are aware, there Status a review of these criteria would be conducted competent and customer-focused
are illegal mining activities in Ghana. When we banned in the coming months that will include the current £15 human resources, industry-leading
illegal gold mining, we had to provide an alternative million total net worth level. Alongside the annual technology infrastructure and
mechanism for these people to support their livelihood. ten metric ton production floor for those gold refiners
So, we help them with opportunities in other sectors who also produce a significant tonnage of silver would transparent and globally
such as afforestation, and so on. The University of be looked into. To make LBMA membership more compliant-sourcing practices.
Mines Technology trains Some of these people on the relevant in global precious metal space membership
safe mining process, mercury-free mining, and so on. criteria would also be looked into. Sovereign Metals Limited would
Mr Philip Newman: Nick, where do you think the pursue environmentally sustainable
industry would be five years from now? Three months pilot scheme of the Gold Bar Integrity manufacturing practices and would
Mr Nick Spencer: At the moment there is only one Programme jointly implemented by LBMA and WGC strive to be a world leader in its
mine. Five years from now, five mines each with a which aims at increasing transparency, accessibility, chosen segment from India.
production of two tonnes each per year is a possibility. and fungibility of gold across the industry has been
Execution is very challenging in India. India could move completed involvement of a selected group of mines,
to 100 tonnes per year from 20 mines 15 years down refiners, mints, banks, and vaults, as well as one
the line. exchange and a retailer in order to test the attributes
of the two block chain-based systems being trialed.
Mr Philip Newman: Minister, could you share some Gold Bar Integrity Programme would not be limited to www.sovereignmetals.in
of the challenges faced in organizing the sector? just London large bars but will also be extended to all
Hon. Dr Kwabena Okyere-Darko Mensah: The main production from LBMA good delivery refiners
goal of ASM, which contributes 43% of gold production
in Ghana, is to create jobs. ASM creates between one Another initiative between LBMA and WGC is
million to 2 million jobs. Community mining has created to establish a working group with key industry
50,000 jobs. participants to help define and align the definition of
sustainability for the industry. The association would
Challenges- Some of the mines do not follow sound like to see more of you within the membership and the
mining practices. The government has banned mining good delivery list as you are and will remain a hugely
in riverbeds and mining in forest areas. This is to important part of the market. Thank you and all the
protect the environment and ensure sustainability. best to you
Investment in the ASM sector is another challenge.

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