Consolidation likely among gold refineries

Lack of scrap collection coupled with increase in import duty on dore hit domestic refineries hard

Consolidation looms in India’s gold refinery business due to non-availability of scrap gold for melting and processing of dore (unrefined gold) being uncompetitive.
 

Consequently, average operating capacity of refineries has declined to 25 per cent.

India is dependent on gold imports, either in refined or dore form, to meet its needs. Imports account for around 85 per cent of total supply and the refining sector plays an important role in putting these in a form suitable for the gold industry. The refining industry also recycles old jewellery, which accounts for around 15 per cent of supply.

The