To refine gold in South Africa, you need a refining license issued by the South African Diamond and Precious Metals Regulator (SADPMR) under the Precious Metals Act, 2005.
Here’s a breakdown of the key aspects:
What is a Refining License?
- A refining license, issued by the SADPMR, allows a person to buy, receive, refine, change the form of, and dispose of unwrought precious metals.
- The Precious Metals Act 2005 regulates dealings with precious metals and their ores, and it is illegal to acquire, possess, or dispose of unwrought precious metal without a refining license.
- The license is valid for a period of 10 – 30 years
- It is illegal to acquire, possess, or dispose of unwrought precious metal without a refining license.
Requirements for a Refining License:
- Application Form: You need to complete the appropriate application form PMR
- Business Premises: You must provide proof of business premises (lease agreement or ownership documents).
- Company Registration: If applying as a company or close corporation, you need to provide company registration documents and identity documents and police clearances of all members or directors.
- Technical Ability: Demonstrate your technical ability or access to technical expertise in the refining process.
- Financial Ability: Provide a bank statement or letter from the bank indicating that you have a bank account.
- Business Plan: You need to submit a proposed business plan, including a Broad-Based Socio-Economic Empowerment (BBBEE) plan.
- Company Resolution: If acting in a representative capacity, you need a copy of a resolution stating the person acting in representative capacity for the organization.
- Inspection Report: You will need an inspection report from an authorized official.
- Application Fee: There is an application fee payable once the application is accepted by SADPMR.
- Transformation Verification Report: If applicable, you need to provide a transformation verification report.
- Source of Precious Metals: Indicate the source from which precious metals will be obtained.
- Period of License: Specify the period for which the refining license is required.
Where to Apply:
- Submit the completed application form to the office of the Regulator at the relevant address specified in the appropriate form.
Important Considerations:
- Precious Metals Act:The Precious Metals Act 2005 regulates dealings with precious metals and their ores.
- Second-Hand Goods Act:If you are a jeweller dealing in second-hand jewelry, you need to comply with the Second-Hand Goods Act, 2009 (Act No. 6 of 2009) in addition to having a refining license.
- Rand Refinery: For much of the past 100 years, gold mined in South Africa has been refined by the Rand Refinery based in Germiston.
- SADPMR:The South African Diamond and Precious Metals Regulator (SADPMR) is the body responsible for regulating the precious metals industry in South Africa.
- Need assistance to apply: contact Evan Roberts on WhatsApp +27739990999 Click Here
Acknowledgements
Thank you to the Rand Refinery, Metal Concentrators, SA Precious Metals and the
Jewellery Council of South Africa for their support and invaluable feedback for this Spotlight. We would
also like to extend a special thank you to the South African Diamond and Precious Metals Regulator.