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

2. 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?

3. 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

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

5. 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?

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

7. 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

8. THANK YOU