Dore and Scrap Sourcing – Ways to Resolve Challenges An Introduction Hitesh Kalia MMTC-PAMP India Private Limited August 12th, 2017

Data raises some interesting questions for our industry 2012 2013 2014 2015 2016 Global supply (tonnes) 1,983 2,075 2,111 2,210 2,233 India’s Share of Supply 1% 2% 4% 10% 6% Domestic Scrap 118 96 93 80 82 Why is dore supply increasing globally but supply to India reducing in share? Why is dore sourcing reducing despite increases in number of refineries? Why is demand for gold high but recycling of gold in decline?

The challenges are well understood by us… Challenges in sourcing Challenges in recycling Long term contracts anticipating fixed long term shipment plans Due Diligence on India Operations Good Delivery Refiners (Responsible Gold) Dynamic market restrictions No Conflict gold (Applies to artisanal sourcing) Lack of transparency in Value Chain Inverse relation between Transparency and Evasion of Tax Regularisation of KYC Procedures for Domestic Sourcing

Two globally available solutions exist…. Challenges in Dore sourcing Challenges in scrap recycling Responsible Gold in India Using artisanal sourced dore

Why doesn’t industry use responsible gold? What is Responsible Gold? In 2003, Kimberly Process Certification Scheme to prevent “conflict diamond” In 2011, OECD - Due Diligence Guidance introduced – becomes de facto international standard to foster global responsible supply chains of minerals and ensuring combat Human Rights Abuse, avoid Conflict Contribution and to comply with AML & CFT LBMA introduced Responsible Gold Guidance and mandated that refiners producing LBMA good delivery bars must comply with LBMA Responsible Gold Guidance by following a five-step framework Independent Third party audit to provide transparency and consistency for Responsible Gold Programme GDL includes 71 LBMA Gold Refiners located in 31 countries with MMTC-PAMP being only Indian Refinery from India Why doesn’t industry use responsible gold?

Process for sourcing from artisanal mines in place exists Why doesn’t industry use responsible gold to facilitate artisanal mining?

Four discussion topics for our panel Challenges in Dore sourcing 1 Challenges in scrap recycling 2 Responsible Gold in India 3 4 Using artisanal sourced dore

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