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Metalor Technologies Singapore Pte Ltd – Meeting Asia’s Precious Metals Demand

By Metalor Technologies Singapore Pte Ltd

Published on March 9, 2017

The infrastructure for gold trading in Singapore has grown tremendously in recent years thanks to efforts by International Enterprise (IE) Singapore and SBMA. The establishment of Metalor’s fifth refinery in Singapore in 2013 has been crucial to the country’s ambitions of becoming a global precious metals trade hub. Crucible takes a look at the Swiss refiner’s operations here and speaks to its Refining Business Unit manager, KL Yap, to get an idea of Metalor’s role in the gold industry and the refining sector in Singapore.

Metalor Singapore, a 100% subsidiary of Metalor Technologies International SA, was established in 2013 as part of efforts by the Swiss refiner to supply precious metals to the burgeoning Southeast Asian market.

Founded in 1852, the private-equity controlled diversified industrial group in the precious metals sector is headquartered in Neuchatel, Switzerland and employs 1,500 people around the world. Its core businesses are recovery and refining, manufacturing electrical contacts, and manufacturing plating solutions and plating equipment. The group is present in 17 countries and operates 12 production facilities globally.

It chose Singapore to construct a gold refinery and bullion product manufacturing plant to meet the regional demand for gold, following efforts by the Singapore government and IE Singapore to position the country as a global trading hub for the physical trading of precious metals. Crucial in boosting trading was the Singapore government’s decision to remove the 7% Goods and Services Tax (GST) on Investment Precious Metals (IPM) in 2012.

As the only major gold refiner in the country, Metalor Singapore has a pivotal role to play in the city-state’s bid to become a precious metals hub for the region.

In June 2013, the Inland Revenue Authority of Singapore (IRAS) certified Metalor Singapore as an approved IPM refiner and producer. The same month, the new refinery cast its first kilo 99.99 bar.

Metalor is a Swiss-headquartered precious metals refining and speciality products group, with precious metals refinery facilities in Europe, United States, Hong Kong and Singapore.

Metalor’s Operations in Singapore

Metalor Singapore focuses on gold refining of mine doré and the recycling of precious metal bearing scraps; recycling and upgrade of gold bullion; gold products for the jewellery, electronics and metal surface finishing industries; and gold bars. Its customers are mainly banks, bullion traders, scrap collectors and mines in Southeast Asia.

Metalor’s refineries worldwide have an annual gold refining capacity of over 800 tonnes.

Metalor’s gold refining methods include chemical and electrochemical refining processes. The company normally accepts the following goldbearing materials for refining to specified purities up to 999.9: semi-refined bullion, mine doré, old jewellery and industrial waste, jewellery manufacturers’ scrap and old coins and medals.

Metalor Singapore was added to Good Delivery List, a quality certification of the London Bullion Market Association (LBMA), for gold in July 2014, making it the largest LBMA-accredited refinery in Southeast Asia.

Takeover by Tanaka Kikinzoku Kyogo K.K.

In July 2016, Metalor announced that Japanese industrial group Tanaka Kikinzoku Kyogo K.K. was acquiring 100% of the shares of Metalor Technologies International SA.

The precious metals manufacturer develops and sells products containing precious metals materials for the electronics, semi conductor and automotive industries.

The acquisition will allow Metalor to enlarge its product and service offerings to customers globally. For Tanaka Kikinzoku Kyogo K.K., combining the operations of both companies will allow it to expand its recovery and refining business into new geographic regions in which it has not established a base, including North America, Europe and Asia. This will also increase the sales of its products and services to Metalor’s blue-chip customers.

“The synergy behind the takeover of Tanaka is the complementary nature of both companies in terms of geographical fit and complementary business. Tanaka Group is a reputable player in Asia whilst Metalor has a strong presence in Europe and the Americas. Together with Metalor, The Tanaka Group will become one of the Tier One precious metals companies in the World. Metalor will continue to operate under its own brand name and the management of Metalor will continue to run the company”, Metalor Group director Frank Tanaka and CEO Philippe Royer said in a joint statement.

Refineries on the LBMA Good Delivery List have to be financially viable and meet rigorous production standards of refining and assaying.

Metalor Singapore: Quick Facts

Materials accepted

All gold and silver bullion products, all mining dorés, all jewelry scraps, all fusible industrial scraps.

Refining capacity

3.0 tonnes/week.

Bullion production capacity

4.0 tonnes/week.

Refining processes

Electro-refining
Hydro-metallurgical refining
Silver doré refining

Assay

Fire assay below 99.5%
ICP assay above 99.5%

Products

1kg bar 99.99
100g bar 99.99
400oz London Good Delivery bar

Certifications

Responsible Jewelry Council – Certificate of Conformity
LBMA Good Delivery status

Contact

Metalor Technologies Singapore Pte Ltd
Surface Engineering Hub
8 Buroh Street #01-06
Singapore 627563
Tel: +65 6586 3333
Email: sales.sg@metalor.com
Web: www.metalor.com

Why did Metalor choose to set up its fifth gold refinery in Singapore?

The country is strategically situated in Southeast Asia and is between the gold trading supply chain of India and China; hence our Singapore refinery enables bullion traders in Asia to be more cost efficient.

How does Metalor Singapore see its role in building the country’s role as a precious metals trading hub?

It is vital for IE Singapore to continue its lobbying and close collaboration with SBMA to identify and implement initiatives toward achieving this goal. One of them might be spearheading discussions with Singapore’s national airline to be competitive in terms of freight rates for the import and export of bullion products, which will significantly improve the overall cost efficiency in the current gold ecosystem.

How do you see regional demand and Metalor’s operations in Singapore evolving in the next few years?

Gold is a safe haven and relatively stable investment, so the demand coming from Asia, with an expanding middle class, will also grow. With our current annual gold refining and production capacity of about 150 tonnes to 200 tonnes, Metalor will continue to serve as one of the key precious metals solution providers in Southeast Asia for many years to come.

— KL Yap, Refining Business Unit Manager, Metalor Technologies

* This article was published in partnership with Metalor Technologies Singapore Pte Ltd

SHELLY FORD

Nikos Kavalis is a founding partner of Metals Focus. He has over 13 years of experience working as a metals analyst/strategist for the Royal Bank of Scotland in London and as a metals analyst for GFMS. Nikos holds a BSc in Econometrics and Economics from the University of York and MSc in Econometrics and Mathematical Economics from the London School of Economics.

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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.