Date:14/03/2008 URL: http://www.thehindubusinessline.com/2008/03/14/stories/2008031452281000.htm

Back MMTC inks pact with Swiss firm for gold refinery

Bindu D. Menon

New Delhi, March 13

State-owned trading company MMTC has inked an agreement with Swiss metal company PAMP to set up a gold refinery in Sohna, Haryana. The joint venture is being set up with an initial investment of $50 million in the first phase, and is likely to be operational later this year.

“We have got necessary approvals from our board for setting up the refinery. The refinery will have an initial gold refining capacity of 360 tonnes and gold medallion manufacturing capacity of 16 tonnes,” Mr Sanjiv Batra, Chairman and Managing Director, MMTC, told Business Line, on the sidelines of an industry meet.

Jewellery retail foray

The gold refining and medallion-manufacturing plant is a part of the company’s agenda to foray into the jewellery retail business.

MMTC would hold 26 per cent in the joint venture and the private partner 24 per cent. The balance equity stake would be held by financial institutions and the public after an initial public offering is made.

Mr Batra said MMTC would also have to get the Union Cabinet’s clearance for the refinery, which would make gold medallions apart from bricks.

Mining regulator mooted

MMTC is currently the largest importer of gold. There are 29 organisations including some banks which are importing gold, he said, adding the company has mooted the idea of setting up of a regulator for the mining industry on the lines of a regulator in the telecom industry.

MMTC’s precious metals business stood at Rs 13,300 crore in 2006-07. It is expected to go up to Rs 17,000 crore in 2007-08.