Friday, 26th May 2006 (2902 views)

South African firm Rand Refinery is reportedly considering establishing a new refinery in India.

The Economic Times reports that the group is considering taking advantage of new rules in India which will make hallmarking compulsory from 2008.

Global markets director Chris Kenny told the Indian daily the introduction of the new rules could have a galvanising effect on demand and the need for local refineries.

"Once hallmarking becomes mandatory we believe that there would be enough market for small refineries to be set up in the key markets," he said.

He also revealed some initial discussions had taken place about the possibility of such a move, although he stressed no firm decision had yet been taken.

India is the world's largest market for gold, with investment demand for the precious metal in the country touching 42 tonnes in the first quarter of 2006, up 32 per cent year-on-year.

Demand for gold jewellery in the same quarter stood at 103 tonne, according to World Gold Council figures.

 

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