The Dubai Multi Commodities Centre (‘DMCC’), a Government of Dubai Authority, is to issue its international DMCC ‘Responsible Sourcing of Precious Metals Review Protocol’ in November 2012.
In June this year, DMCC made it a mandatory requirement for Dubai Good Delivery (‘DGD’) refineries to implement all of the provisions of the DMCC Practical Guidance for Responsible Sourcing of Precious Metals, as a pre-requisite for DGD members to continue their membership. DGD members are now self-implementing the initial steps to be in a position to be audited and publish reports on their level of conformity with the DMCC guidance by June 2013.
The DMCC Review Protocol will provide guidance to international audit firms for conducting assessments on DGD member refineries’ due diligence processes, as well as ensure a level of conformity when implementing DMCC’s Practical Guidance for Responsible Sourcing of Precious Metals.
Gautam Sashittal, Chief Operating Officer, DMCC, said:
“The ‘Dubai Good Delivery’ standard is a world-class robust international benchmark for the production of gold and silver, and the Review Protocol will enable DGD member refineries to implement the concluding steps of DMCC’s Practical Guidance by engaging the services of DMCC-approved assurance providers and/or auditing entities.
“Following the Organisation for Economic Co-Operation and Development’s (OECD) launch of its ‘Draft Supplement on Gold in November 2011,’ intended for conducting due diligence for responsible sourcing of gold, DMCC led the UAE precious metals industry in introducing its 5-step Practical Guidance in April 2012. The introduction of the DMCC Review Protocol is the natural next step to ensuring responsible sourcing throughout DGD accredited refiners’ supply chain and will serve as an international industry benchmark.”
DMCC continues to be a part of the OECD’s interim governance group for the implementation of their guidance and has taken further steps to make compliance with these guidelines a mandatory requirement for all DGD-accredited refineries through a host of activities, including practical workshops. The first series of workshops were launched in July and were primarily aimed at UAE-based gold trading organisations to explain the DMCC Practical Guidance for Responsible Sourcing of Precious Metals in detail, and the related procedures that should be implemented across the supply chain.
DMCC has also been in discussions with concerned UAE governmental agencies to ensure that the Practical Guidance for Responsible Sourcing of Precious Metals is implemented across the UAE.
Hassan Nasser, Director, Compliance and Inspection, DMCC, said:
“DMCC plays an integral role in ensuring that the UAE provides precious metals industry participants a secure and regulated environment with the right infrastructure and practices that will continue to allow them to participate in the global markets. As a major global trading hub for gold and as a government authority, leading the development and the implementation of the OECD guidelines demonstrates the DMCC’s commitment to promote responsible and fair trade practices in the UAE.”
Today, Dubai is one of the foremost gold centres in the world, with trade totalling 1,200 tonnes ($56 billion in value) in 2011. The Practical Guidance series of workshops are currently being held at the Almas Conference Centre in Almas Tower, Jumeirah Lakes Towers, and those interested in participating can email DMCC on email@example.com.