MUMBAI: Australian gold mining firm Citigold Corporation plans to export 40,000 ounces (over 1,134 kg) of gold to India in the next one year. Citigold currently has over 3 lakh kg gold deposits in its mines. The company also plans to launch its own financial instruments.
“In next one year Citigold plans to approximately export 40,000 ounces of gold to India,” the company head international office Manan YR Desai told ET on sidelines of a gold convention here. He said that they will also be the first mining company to launch their own financial instruments that would be customised.
However, he did not reveal any further details. The company is also scouting for a joint venture partner in the area of gold mining since last year, where it will be a minority shareholder.
Managing director, Mark Joseph Lynch said that talks are underway with possible partners and the company expects to announce further development in the next few months. “Getting hold of new grounds is a competitive area. Who we are partnering with and how we are going is subject to confidentiality. In a few months time we will be able to come back and talk to you,” he said.
India, historically, was a major gold producer and most of the world’s new gold comes out of old gold fields, said Mr Lynch, adding “If you have old gold fields you still have lots of gold remaining.”
Gold is not an easily found metal and all that was easily mineable has already been found. He said, “If you find a big copper mine it might produce 10% of the world’s copper but the biggest mine in the world doesn’t produce even 1% of the world’s gold.”
“If the Indian gold industry is developed, in five years time the country could be a big gold producer,” Mr Lynch added.
India does not have too many refining capacities and all the existing ones are very small. Regarding this Mr Lynch said that all jewellery recycling requires some sort of refining but in India gold is usually bought from other big producing countries.
Also, in the value chain, refineries add little value because it is not remunerative. Nearly 50% value addition is done at the stage of gold mining, while refining amounts to only 1%. Manufacturing amounts to about 10-15%, so the biggest value-addition is in the mining process, he added.
All big producers refine gold in their own country because it is most economical but for a country like India importing finished gold is easier and cheaper than importing raw.
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