“Goldsikka is coming up with the next big thing which can produce
300kg/day of gold.”
Gold mines produce rough gold, known as dore, which is typically 80 percent pure gold. This gold dore is then sent to a refinery, where it is refined into various forms and purity levels of gold. The London Good Delivery bars are the most commonly produced gold bars. These bars are the gold standard of the world, according to the rules established by the London Bullion Market Association (LBMA).
Refiners approved by the LBMA must maintain excellent laboratory and production facilities, and these refineries on the good delivery list are actively monitored. Bullion banks typically use only these bars for vaulting and storing purposes.
This refined gold is primarily purchased or financed by central banks and/or gold banks, which serve as the primary link between wholesale buyers, jewellers, and consumers.
Goldsikka Limited aims to establish its own gold refinery, allowing it to refine, mint its own gold, and reuse old jewellery to supplement domestic gold supply. As gold prices have risen and continued to rise, Indian families have resorted to selling old jewellery at current market prices. Incentives for gold refining will also benefit the GMS(Gold Monetization Scheme), where multiple recommendations are made in the report to increase participation in the GMS.
Goldsikka’s Refineries can help address economic, health, and social impacts, such as worker health and safety in rural India, while also benefiting the industry. It can also increase the participation of stakeholders in the industry's development, such as local and indigenous communities and women. Finally, it can promote sustainable practises by providing financial, technical, and capacity-building assistance to developing rural economies.
In correlation to other Indian refiners, Goldsikka's refineries plan to adopt LBMA standards in order to meet the growing global demand for gold. Having refining capacity for both international and domestic markets is a strategy that could be adopted and encouraged so that India can play a role similar to that of Switzerland or the diamond industry.