Refineries

India has over 57 refineries licensed by the Bureau of Indian Standards (BIS) under the IS 17278 standard, yet only one — MMTC-PAMP India, a joint venture between the state-owned MMTC Ltd and Switzerland's PAMP SA — holds accreditation from the London Bullion Market Association (LBMA). This single LBMA accreditation underscores the gap between domestic refining capacity and globally benchmarked quality assurance, a gap that matters because LBMA Good Delivery status is the de facto passport for gold bars in international settlement and central bank reserves.

Refineries sit at the heart of India's gold supply chain. The typical flow begins with imports of either finished bars or unrefined doré gold, which arrives at Indian ports and is consigned to BIS-licensed refineries for assaying, refining to 995 or 999 fineness, and stamping. The refined bars then move to authorized dealers, bullion banks, and eventually jewellers who fabricate the finished product. BIS IS 17278 certification requires refineries to demonstrate assaying competence, maintain minimum purity thresholds, and submit to periodic audits — a framework designed to ensure traceability and consumer protection in a market where purity fraud has historically been a concern.

The refinery landscape in India is not monolithic. Domestic refineries like Augmont, Kundan, and M.D. Overseas operate large-scale plants processing both recycled scrap and imported doré. In-house jewellery refiners such as Titan (Tanishq) and Emerald Jewel Industry refine gold primarily for their own manufacturing lines. Government mints in Mumbai and Hyderabad produce sovereign coins and bars under the India Gold Coin programme. Each category serves a different link in the value chain, and their certification profiles reflect those roles.

Exchange delivery requirements have become a powerful driver of refinery certification. Both MCX (regulated by SEBI) and IIBX (regulated by IFSCA in GIFT City) mandate that gold delivered against futures contracts must originate from approved refineries meeting specific purity and weight standards. Securing MCX or IIBX delivery approval signals that a refinery's output is accepted for settlement in India's two primary price-discovery venues, conferring significant commercial advantage. Currently, only a handful of refineries hold both MCX and IIBX delivery status.

The growing importance of doré refining is reshaping the industry. Importing raw gold doré — semi-pure gold typically sourced from mines in Africa, South America, and Australia — and refining it domestically allows Indian refineries to capture the refining margin that would otherwise accrue to overseas facilities. Doré imports also carry a lower effective duty than finished bars under certain conditions, creating an economic incentive. Refineries with NABL-accredited assaying labs and IGDS (India Good Delivery Standard) compliance are best positioned to capitalise on this structural shift.