JOHANNESBURG (miningweekly.com) – Rand Refinery has formed a joint venture (JV) with the South African Mint Company (SA Mint) to house the refinery’s Krugerrand sales and distribution unit.
The establishment of the ten-year JV, Prestige Bullion, became effective in October last year, but had been pending last week’s unconditional approval by the Competition Tribunal.
Rand Refinery CEO Howard Craig told Mining Weekly Online on Monday that the JV was just a “formalisation” of the unit and that the manufacturing, minting, sales, marketing and distribution of the 22 ct gold Krugerrand bullion coin would remain the same through “outsourcing” to the two parties.
Rand Refinery, which refines and smelts precious metals, as well as produces gold for investment, retail and industrial uses, would continue to manufacture and supply gold coin blanks, as well as sell and distribute the finished Krugerrand, after the SA Mint completed its minting.
“The JV essentially brings together two very distinct South African entities in Rand Refinery and the Reserve Bank’s wholly owned SA Mint, to market a very South African product globally, and bring the strength of both parties together,” he explained.
“It formalises what we have being doing for the past 46 years,” he commented, saying that the formation of the JV would not impact on the refinery’s customers in any way.
The SA Mint was not available for comment at the time of going to press.
The board of directors for Prestige Bullion had been selected and the final processes had been completed.
The parties had, in alliance, been producing the most widely held and actively traded bullion coin in the world since 1967.
Rand Refinery said the world's first ounce-denominated gold coin, named after historical South African President Paul Kruger, was developed by the Chamber of Mines of South Africa and authorised by the South African Reserve Bank.
Meanwhile, Rand Refinery was expanding its global reach with the establishment of a Singapore trading office earlier this year.
The new 12-person office hosted a rapid turnaround, accurate sampling and assaying facility and accepted recycled gold deposits and source scrap.
It also provided buyers and investors access to the Asian region.
The company was also currently examining other international market opportunities to further cement a global market.