First phase of DMCC sold out

The entire 300 hectares of land in the first phase of the Dubai Metals and Commodities Centre (DMCC) is sold out, said its top official.

Tawfique Abdullah, chief executive of the entity, which is planning to tap a large chunk of the global bullion trade, added that about 70 per cent of Phase II has also been sold out to potential investors.

"There is a huge demand from the investors to have their presence at the DMCC. Construction of the facility has also been running ahead of schedule," he said.

"Some of the investors have already begun construction of their building and facilities. Among these are three refineries being built that will help the DMCC become a regional hub for the yellow metal."

The three new gold refineries – Emirates Gold, ARY Gold and Al Ghurair Giga – are being built at the facility which will help Dubai tap a chunk from some of the large gold mines.

Once completed, these will be able to refine between 300 and 500 tonnes of gold annually. All three are being built at an annual capacity of 100 tonnes per year, each with provisions for expansion.

Al Ghurair Giga is a joint venture between the Al Ghurair Group and Mazyood Jewellery with South African company, Mintek, providing technology and marketing opportunities for the refinery.

The facility, to be opened by the end of this year, is being constructed on a 4,000 square metre plot of land at DMCC with an investment outlay of Dh91 million ($25 million). It is expected to bring in mine gold for refining by early next year.

Currently, a 50-tonne capacity gold refinery, run by the ARY Group, is meeting the country's refining needs. This is mostly used to refine and recycle gold jewellery into bars.

In the GCC, a second gold refinery in Saudi Arabia also offers the same services. Both combined recyle about 100 tonnes of bullion.

None of these, however, has tried to tap mine gold which has not been coming to Dubai due to lack of the latest refining facilities and technologies.

With the construction of the DMCC as a preferred gold hub, and the three refineries under construction, Dubai is expected to bring in mine gold for refining, and ensuring up to 99.9 per cent purity.

Because of its close links with the CIS and Central Asian region, Dubai is expected to bring in more mine gold to the DMCC for refining.

Total mine production declined by 1.4 per cent to reach 2,587 tonnes last year from 2,623 tonnes in 2001. With official sector sales, old gold scrap and net disinvestment, supply last year reached 3,978 tonnes.

According to industry sources, out of 835 tonnes of scrap gold, the two refineries recycled about 100 tonnes between them.

South Africa, the United States, Australia, Canada, China, Chile, Indonesia, Peru, Russia, and Uzbekistan are some of the large gold producers, with the top five countries now accounting for just over 50 per cent of world production.