One of the largest gold refineries in the world will look to shut down a metal source from a mine that fails to meet carbon emissions standards.
MKS PAMP SA plans to cut 27.5% from the supply chain before the end of the decade, the company said in a statement on Wednesday. As a result, the Geneva-based company may have to reject gold from the mine, which produces excessive carbon dioxide.
Metal extraction forms the carbon footprint bulk of gold. According to S&P Global, in 2019 miners emitted about one ton of carbon dioxide per ounce of excavation. The industry is responsible for about 0.2% of the world’s total emissions, writes Wood Mackenzie in a report.
The goal is a collaboration between the nonprofit CDP and the United Nations, endorsed by the Science-Based Goals Initiative. MKS PAMP is the first precious metal refinery to have one, it said in a statement.
“We may refuse to deal with some gold mines because we believe they are not doing the right thing,” CEO Marwan Shakarchi said in an interview. “It simply came to our notice then. We will make less money. ”
MKS PAMP is one of the four major Swiss refineries processing two-thirds of the world’s gold. Although the family-run business is smaller than the industry-dominated miners and bullion banks, it serves as a transit point for key world markets. It must keep illegal gold out of the supply chain.
That will be even more difficult after Russia’s invasion of Ukraine. The country is the world’s second-largest gold mine, but its bullion has been banned in the West. There are concerns that the metal could leak into a wide supply chain through buyers from India and China, which could secure it at a discount.
MKS PAMP has stopped accepting Russian gold since the start of the war, the company said in a recent statement. Shakarchi hopes that the companies will take the usual compliance measures to keep the ingredients out.
“I can put my hand on the fire and say directly or indirectly we are not getting gold from Russia,” Shakarchi said. “We will ask the question twice if customer A starts sending us more metals.”
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