From the Wires
Dubai-based Kaloti Brand of Gold Bars Accepted on Hong Kong Mercantile Exchange
By: PR Newswire
Nov. 11, 2012 06:00 PM
DUBAI, UAE, November 11, 2012 /PRNewswire/ --
Kaloti Jewellery International DMCC ('Kaloti'), a leading global corporation accredited by Dubai Multi Commodities Centre's ('DMCC') Dubai Good Delivery ('DGD') Standard announced today that it has been accepted on the Hong Kong Mercantile Exchange (HKMEX) for good delivery of its gold bars. As the only globally accepted and relevant standard for 1kg gold bars with a minimum of 995 fineness, the DMCC's DGD Standard has paved the way for Kaloti to enter Far Eastern markets such as China, Hong Kong and Japan.
In June 2012, DMCC made it a mandatory requirement for Dubai Good Delivery ('DGD') refineries to implement all of the provisions of the DMCC Practical Guidance for Responsible Sourcing of Precious Metals in order for DGD members to continue their membership from June 2013. The Guidance also enables other global industry participants to perform the necessary risk assessments to ensure conflict free gold supply chains.
Tarek El-Mdaka, Managing Director, Kaloti Jewellery Group, said:
"Since Kaloti Jewellery International DMCC became a DMCC-licensed member in 2004, our business has expanded from trading to refining, assaying, logistics, financing and more, and today we have established our presence in Istanbul, Miami, Hong Kong and Singapore. Our growth is largely due to the infrastructure, products and services provided by DMCC such as the DGD Standard. Kaloti has been a DGD accredited refiner and an approved gold brand for Dubai Gold and Commodities Exchange since 2010, which contributed greatly towards our recent listing for gold good delivery on the HKMEX.
"The robustness of the DGD Standard has allowed us to maintain transparency and trust amongst our international client base by satisfying the requirements of our regulators and market participants across the globe.Seeing our gold bars accepted on regional and global exchanges, we appreciate the DGD standard also as a catalyst for growth. We are certain that our recent adoption of the DMCC Guidance and complying with the upcoming DMCC Review Protocol will be equally as fruitful as we continue to expand into new markets."
The Guidance is based on the Organisation for Economic Co-operation and Development (OECD) 'Supplement on Gold' for conducting due diligence for responsible sourcing of gold, and incorporates their '5-Step' framework that relies on each stakeholder within the supply chain to work together to ensure due-diligence is carried out at the highest level. DMCC has also been in discussions with concerned UAE governmental agencies to ensure that the Guidance is successfully implemented across the UAE.
Gautam Sashittal, Chief Operating Officer, DMCC, said:
"As the region's leading commodities marketplace, DMCC advocates transparency and due diligence throughout the entire commodities value chain by ensuring that regional standards are in line with global best practices.
Kaloti's experience with the DGD Standard demonstrates its relevance in the precious metals arena, as well as the confidence such standards create among other key participants. By adopting and implementing the DGD Standard and DMCC Guidance, market leaders such as Kaloti are in a position to provide the necessary assurance that they have the appropriate management systems in place to perform risk assessments on their supply chain and take appropriate risk mitigation actions to encourage conflict free and responsible sourcing of gold."
DMCC will introduce the Responsible Sourcing of Precious Metals Review Protocol in November 2012, which will ensure that Dubai Good Delivery (DGD) accredited member refineries and global industry participants that have adopted the guidance are compliant with the DMCC issued Guidelines. Adherence to the Guidelines will be certified by a panel of reputed international audit firms which will be announced in due course.
Today, Dubai is one of the foremost gold centres in the world, with import and export numbers totalling 1,200 tonnes ($56 billion in value) in 2011. DMCC has played a vital role within Dubai's growth as a gold centre by offering state-of-the-art infrastructure and innovative products and services that benefit the industry, such as the Dubai Gold and Commodities Exchange, the Dubai Gold Vault, and the DGD Standard.
Notes to editors:
About The Dubai Multi Commodities Centre
The Dubai Multi Commodities Centre (DMCC) is a strategic initiative of the Government of Dubai, was established in 2002, with a mandate to provide the physical, market and financial infrastructure required to set up a commodities market place in Dubai. The Centre attracts key players throughout the entire value chain of a wide range of commodities sectors, together with relevant support industries such as finance, logistics and insurance. DMCC has established a robust infrastructure, including free zone status, trade networking platforms, secure vaults and purpose-built storage facilities. Resident companies of DMCC are offered highly attractive benefits under a free zone status, including 50-year guaranteed 0% corporate and personal income tax, 100 per cent business ownership, full ownership of business premises, and a secure regulated environment. DMCC has also implemented a dedicated compliance policy in the organisation, which is in line with the compliance related laws and regulations of the UAE Federal Government and the competent international bodies. DMCC owns three fully operational towers which host the majority of the physical, market and financial infrastructure including the Jewellery & Gemplex facility, the specialized diamond and pearl exchanges and gold vaults.
About the Kaloti Group
Established in the UAE in 1988, Kaloti Jewellery Group has benefited from the strategic location of its Dubai headquarters. Dubai is known worldwide as a trading crossroads - where East meets West and North meets South. Kaloti Jewellery Group has leveraged this exceptional position to create a company with a truly global outlook.
An international corporation, with interests that span the globe from the Far East to the Americas, Kaloti Jewellery Group has integrated its operations under the mantle of Dubai Multi Commodities Centre (DMCC). From this location the Group has expanded and now operates in a number of complementary areas.
The Group provides complete precious metal solutions, from the financing of raw material mining in the depths of Latin America, via complex supply and logistics chains, all the way through to the end product - whether beautifully crafted pieces of handmade jewellery or commercial bullion bars.
Furthermore, the Group has attained ISO certification in a number of fields due to an unrelenting focus on quality. With a base in one of the world's foremost gold trading cities, and Dubai's tax-free status and smooth trading environment, the Group is confidently anticipating continued growth - both financially and geographically.
About the DGD Standard
The DGD Standard was originally launched by DMCC in 2005 as an international benchmark for quality and technical specification standards for the production of gold and silver. The objectives of the system are to increase confidence in the gold and silver industry, create more opportunities for trade finance activities and provide a delivery standard for the Dubai Gold & Commodity Exchange ("DGCX"). In addition this delivery service will provide the technical robustness that brings credibility in the market.
About the Practical Guidance for Responsible Sourcing of Precious Metals
DMCC issued this practical guidance in April 2012 to assist DMCC licensed members and non-members within the UAE's gold and precious metals industry on the implementation of the OECD guidelines on conducting due diligence and developing a risk management framework for responsible supply chain management of gold and precious metals when sourcing from conflict-affected and high risk areas. The guidance provides a common reference for all actors in the supply chain on a step-by-step basis to ensure responsible sourcing and chain of custody of the gold and precious metals and to eliminate the risk of direct or indirect support to any kind of conflict in accordance with international standards.
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