ARY to establish big gold refinery

Dubai-based ARY Group is to set up a 250-tonne-a-year gold refinery at the Dubai Metal and Commodity Centre (DMCC).

At the same time, Al Ghurair Giga Gold Refinery has started working on a 100-tonne facility, the first by Al Ghurair family, said Essa Al Ghurair, director of Al Ghurair Giga Gold Refinery.

The project, added Al Ghurair, was given the green light by General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Mini-ster of Defence, and will be built at the DMCC's headquarters on Sheikh Zayed Road.

Al Ghurair refused to give details of the investment involved but he hinted that it was less than the 150 million Saudi riyals spent on a refinery in Saudi Arabia.

Haji Abdul Razzak Yakoub, managing director of ARY Group, said, "the refinery will have capacity ranging from 100-250 tonnes of gold a year and we will begin working as soon as we get the land, hopefully soon."

"It will be spread on a 200,000 square feet plot and will have the latest machinery.

Al Ghurair said, "within the first six months, the refinery will produce 100 tonnes, but can increase its capacity to 200 tonnes because it will have the ability to increase another production line at the refinery."

ARY is going to discontinue its Sharjah refinery which has a refining capacity of 30 tonnes of gold a year and relocate it in Saudi Arabia, he added. Financial details of the projects were not divulged.

"We do not know the tariffs yet and it's too early to make a financial statement when we don't know the cost of the land. However, we are committed to invest any amount to make our refinery the best in the region," Yakoub said.

Al Ghurair said the company has already finalised the designs of the project, which is going to be implemented in collaboration with two partners: Mazioud Jewellery and South African, Mintec, who have the know how.

Meanwhile, Emirates Gold is going to relocate its 50-tonne refinery to the DMCC and expand capacity to 350 tonnes a year.

"We refine 50 tonnes of gold a year. We are planning to increase its capacity to one tonne a day which will enable it to refine between 300 to 350 tonnes," said Mohammed Shakarchi, managing director of Emirates Gold.

Once all the three refineries are up and running, they will be able to refine between them 700 to 800 tonnes of gold every year, more than a third of the global gold consumption, which is currently estimated at 2,300 tonnes.