Emirates Gold First Refinery in the United Arab Emirates to Pass Responsible Gold Audit

Dubai-UAE: 24 September 2013 – Emirates Gold announced, it has successfully passed an independent third-party responsible gold compliance audit conducted by Ernst & Young, an expert in conflict mineral.

The audit concluded that Emirates Gold has complied with each of the five steps of the Dubai Multi Commodities Center's (DMCC) Practical Guidance for Market Participants in the Gold and Precious Metals Industry – establishing supply chain management system, identifying and assessing risk, developing and implementing risk mitigation, carrying out an independent third party audit, and reporting annually – for the period from 1st June 2012 to 31st December 2012.

In broad terms, responsible sourcing is the action of conducting due-diligence to accept gold which is free from conflict, crime and abuse.   Responsible sourcing is achieved by implementing a strong framework to identify and mitigate risk in addition to applying standard market practices, such as know-your-client and anti-money-laundering procedures. 

In some parts of the world, proceeds of gold sales are used to fund conflict and war, and more generally the high value of gold makes it a medium which can be used for crime and fraud.  This highlights the importance of applying due-diligence while sourcing gold.  Other reasons why a refiner must source gold responsibly are forced labor, and environmental and health concerns stemming from some illegitimate forms of mining. 

Mohamad Shakarchi, CEO and Founder, Emirates Gold, said: “We are thrilled to position ourselves as a leader in the region and globally, on the subject of responsible gold. Dealers of Emirates Gold branded bars can draw comfort from this result. Responsible sourcing is our contribution to address and mitigate the various associated issues.  On the one-hand, this may reduce the amount of illegitimate gold in the system, and on the other-hand producers of jewelry or electronic devices can feel more comfortable with the origin of their material.

“Since the Organisation for Economic Co-operation and Development (OECD), The London Bullion Market Association (LBMA) and DMCC published their guidance, our team worked diligently to ensure that our existing strict due-diligence standards merge with the five step approach of the new guidance. We are grateful to our suppliers who play a key role in building responsible supply chains, and our banking counterparties who are instrumental to the flow of gold in the region. Looking ahead, our focus and interest on the subject of responsible gold will not diminish, and we are committed to maintaining our leadership in this area by continuously improving our own knowledge, education and risk framework.”

At present, Emirates Gold sells its products to international bullion traders and locally through major retailers and jewelers and in Europe and Asia to wholesalers who then distribute the bars in their respective countries or sell them online. With a refining capacity of up to 200 tons per year, Emirates Gold continually strives for excellence in the services and products it delivers to its clients. Producing responsible gold is no exception and this audit further confirms Emirates Gold's leadership position in the Middle East.

Set-up in 1992, Emirates Gold through their operation and growth, have played a pioneering role in the rise of Dubai as an international hub for gold trading. The company provides an array of services, namely, assaying, smelting, refining and trading. They also offer a range of value-add products, such as: minted Emirates Gold investment bars ranging from 1 gram to 100 grams, and customized products such as pendants, medals, ornaments, or other designs produced to client specifications.