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When it comes to gold trading, Switzerland is at the forefront. Now the precious metals control is reprimanding the Valcambi gold refinery in Ticino. The reason: According to research by RTS, some of the gold processed at Valcambi comes from dubious sources.
When it comes to gold trading and production, Ticino is a global leader. Five refineries in the canton process around two-thirds of the world’s gold. This also includes the Valcambi refinery in Balerna. Around 2000 tons of precious metal are processed there every year. Among them is a lot of gold, some of which comes from Dubai.
The gold is supplied by the raw materials company Kaloti. This is active in the trade, transport and processing of gold and belongs to a family from the United Arab Emirates. Kaloti is said to have gold mined from mines in Darfur and Sudan – areas where civil war and poverty are rife.
Legend:
Some of the gold that Valcambi processes is said to come from conflict regions and from mines that use child labor.
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Marc Ummel from the Swiss aid organization Swissaid has been observing Kaloti for many years. “We have the impression that the company is involved in money laundering, drug trafficking and illegal gold purchases,” he emphasizes. Kaloti controls the Dubai refinery called MTM (MTM-O Gold Refinery) and the London trading company Trust One.
The supply chain leads to Valcambi in Ticino. The Federal Customs Administration drew the Ticino refinery’s attention to the risks in December 2020. The corresponding letter states: “The audited documents show that the management of Valcambi SA has decided to maintain the business relationship with Trust One, although there is a high risk related to the origin of the gold with regard to MTM Gold.”
Rough allegations against Valcambi
The customs administration reprimands Valcambi and recommends tracing the origin of the gold back to the source: “Especially in cases in which increased risks can be identified due to the parties involved or the country of origin, we would advise you to introduce processes and procedures that allow for an expansion provide for and enable testing beyond your direct customer.”
Valcambi declined to comment on RTS. The Ticino company has filed a lawsuit against the Swissaid aid organization.
Legend:
The Valcambi gold refinery from Balerna (TI) is silent on the serious allegations.
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The allegations against Valcambi are steep, the industry risks reputational damage. That is why the president of the industry association, Christoph Wild, demands that every member must keep an eye on the entire supply chain right down to the mine.
When asked if Valcambi didn’t seem interested in where the gold came from, Wild defended Valcambi. The industry has imposed ethical guidelines on how to deal with gold. “We require our members to know the sources exactly,” says Christoph Wild.
Only recommendations, no sanctions
At the Swiss Federal Audit Office, audit expert Grégoire Demaurex draws a sober conclusion: There are only recommendations for refineries in Switzerland and no sanctions against companies from Dubai. “There is no element at the international level that prevents refiners from buying gold through Kaloti or other UAE companies.”
The Ticino refineries are therefore not forced to be more transparent. The gold shines – no matter where it comes from.