ABC Refinery Accredited by the Shanghai Gold Exchange
10 April 2018
New export opportunities for Australian Gold opened up by prestigious accreditation for Australian gold refiner
Independent, Australian gold refinery, ABC Refinery has achieved a rare global feat in China – attaining accreditation on the Shanghai Gold Exchange (“SGE”) opening up a new pathway into the world’s biggest gold market for Australia’s second largest export - gold.
A crucial network for trading gold in China, all official gold sales within China must occur through the SGE making it the primary gateway into the world’s largest gold market worth over A$341 billion annually.
The inexorable growth in demand for gold in China has seen it rise from 7% of the world market in 2003 to account for more than 23% of global demand today. This growth is forecast to continue, underpinned by the increased spending power of China’s burgeoning middle class which is forecast to swell to more than 500 million people by 2020.
“Taking Australian gold to the world’s largest physical bullion market is a critical strategic initiative for ABC Refinery and the Pallion group,” Mr Phillip Cochineas, Managing Director of ABC Refinery, said.
“It is also a significant demonstration of the strong bilateral trade between our respective countries and reflects the strong long term outlook for gold as well as an acknowledgment of the quality of Australia’s gold,” he said.
The Shanghai Gold Exchange traded gold contracts equivalent to almost six thousand tonnes of the precious metal in 2017, equivalent to almost one quarter of the total global demand for gold last year, conservatively valued at in excess of A$315 billion.
ABC Refinery becomes one of only seven international companies to receive this prestigious accreditation and is Australia’s only independent refinery accredited by both the London Bullion Market Association (LBMA) and the SGE.
ABC Refinery is the exclusive producer of ABC Bullion products.
ABC Bullion Managing Director Janie Simpson added: “ABC Bullion is one of just seven global operations with access to the world’s biggest gold market and amid fears of growing global trade protectionism, it has secured a new route to China’s lucrative precious metals market.”
To secure accreditation for the Shanghai Gold Exchange, ABC had to prove its technical excellence as well as the skill and commitment of its highly experienced leadership team. Not only does SGE accredited gold bullion have to be a minimum of 99.99% metallic gold purity, but it has to fit within some of the toughest tolerances for impurities measured in parts per million.
“We are delighted to have passed the stringent technical and quality requirements of the Shanghai Gold Exchange. This is an important validation of our technical quality and the robustness of our systems and processes,” Ms Simpson said.
Mr Haywood Cheung President of The Chinese Gold & Silver Exchange in Hong Kong (“CGSE”), said:
“We are delighted to learn of the accreditation of ABC Refinery by the SGE. This will form an integral part of the “one belt one road policy” endorsed by the CGSE and underscores the essential link between Australia as the world’s second largest gold producer and China which is the world’s largest gold consumer.”
Mr. Albert Cheng, CEO of the Singapore Bullion Market Association, said:
“We are very pleased to hear that ABC Refinery, our SBMA member based in Sydney, becomes 1 of the 7 International LBMA accredited refineries to be accredited by the Shanghai Gold Exchange. This is another major step in their “Go Asia” strategy and also extends their product reach to the biggest market in China. With their already established relationship with CGSE and SBMA, they will continue to play a key role as a physical gold flow provider in the development of the Belt and Road Initiative of the gold market.”
The SGE is a membership-based, self-regulated entity established by the People’s Bank of China in 2002. The SGE provides trading, clearing, delivery and vaulting services of gold, silver and platinum including physical trading, deferred trading, forward, swap, options and leasing. It also sets the Yuan-denominated gold benchmark price daily.
About ABC Refinery
ABC Refinery is Australasia’s pre-eminent independent precious metal assayer, refiner and mint. ABC Refinery is Australia’s only independent refinery accredited by the London Bullion Market Association (LBMA) and the Shanghai Gold Exchange (SGE). ABC Refinery is the refining division of Pallion, Australasia’s largest independent precious metal services group of companies. Pallion has been involved in the refining and processing of precious metals in Australia since 1951. See www.abcrefinery.com
Pallion designs, manufactures and distributes precious metal products and related services. Commencing operations in 1951, today it is the largest fully integrated precious metal services group in Australasia. Maintaining its headquarters in Sydney Australia, it is a privately-owned group of companies, with manufacturing facilities and offices across Australia, Hong Kong (SAR) and mainland China. Pallion provides the following services: Bullion; Refining and Minting; Casting and Jewellery; Fabricated Metals; Findings; and Vaulting. See www.pallion.com
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