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Metalor Technologies’ Commitment to Responsible Sourcing in Precious Metals Industry

By Jonathan J. Jodry, Business Development Director, Metalor Technologies

The enactment of the Dodd-Frank Act in 2010, a United States federal law requiring manufacturers to audit their supply chains to evaluate the risk of using conflict minerals, and the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas of 2011 were pioneering efforts in highlighting the importance of responsible sourcing of precious metals. Over time, this has become a top priority for the industry, with several regulatory initiatives introduced, including the UK and Australia Modern Slavery Acts, California Transparency in Supply Chains Act, Transparency Act in Norway, and more recently, EU and Swiss regulations.

In response, several organizations have introduced certifications to ensure that their members are following responsible sourcing principles, including the LBMA (through its Responsible Gold and Silver Guidance), the LPPM (through its Platinum and Palladium Responsible Sourcing), the Responsible Jewellery Council (RJC), and the Responsible Business Alliance (RBA).

Metalor Technologies, a leading precious metals refiner with five LBMA-accredited refineries worldwide (China, Hong Kong, Singapore, Switzerland, and the United States), has been an early adopter of responsible sourcing initiatives. However, Metalor recognized that existing rules and initiatives could be improved to offer more transparency and security to its customers. To address this, Metalor has developed a unique sourcing, traceability, and security ecosystem (see Figure 1) based on the following principles:

  • No sourcing from mine collectors, and sourcing from ASM (artisanal or small-scale mine) only when they are integrated into a robust, government-backed framework like Swiss Better Gold.
  • Confirmation of the origin of the dorés received through a producer-independent, scientifically validated process.
  • Security features on investment products that are compatible with both banks and individual customers’ needs.

Although many initiatives have been developed to ensure the provenance of mined gold, they all suffer from a fundamental flaw: they rely on doré producers to perform the initial security step, such as registration on a blockchain, placement in a security container, or marking the bars with visible or forensic features. Unfortunately, nothing prevents a dishonest supplier from adding illegal metal to the dorés at the source, undermining the integrity of the entire supply chain.

Despite having the highest level of trust for its LSM (large scale mining) customers, Metalor recognises the importance of mitigating even the slightest risk of illegal manipulation and instilling confidence in its customers. To achieve this, Metalor worked with Dr Barbara Beck from the University of Lausanne in Switzerland to develop a scientific tool called the Geoforensic Passport. This project, which was co-financed by Swiss governmental innovation fund InnoSuisse and Metalor, took more than five years to complete.

Figure 1: Metalor’s sourcing, traceability and security ecosystem

The Geoforensic Passport uses advanced yet inexpensive X-ray fluorescence analyses to create a unique signature for each supplier in up to 15 dimensions (only three dimensions can be represented in Figure 2). This signature is then used to validate the provenance of each ingot in every shipment that arrives at Metalor’s refineries. The process is fully integrated into Metalor’s receiving flows, ensuring that customers can have absolute confidence in the origin of their gold.

The Geoforensic Passport has been validated through a systematic, scientific approach. No part of it has been patented, and any interested party can use it.

Figure 2: Example of a Geoforensic Passport

Metalor Technologies places a strong emphasis on responsible sourcing of recycled gold. We support the highest standard currently available, the Chain-of-Custody (CoC) from the Responsible Jewellery Council (RJC). Many of our customers who request recycled gold rely on this standard, which excludes investment gold (gold bars and coins).

Our refineries are fully integrated with SAP, enabling us to trace the origin of received lots throughout the refining process until the final products are manufactured, including investment products. We offer segregated refining based on various criteria, such as type (exclusively using recycled CoC gold), area of origin (Swiss Better Gold from Peru), or even a specific mine, depending on our customers’ needs.

To ensure full compliance with existing standards, all of our refineries undergo annual audits for multiple certifications, including but not limited to ISO 9001, ISO 14001, ISO 45001, LBMA, LPPM, and RJC.

Metalor casts and mints gold products are renowned for their quality and have excellent reputation in numerous markets. To prevent counterfeiting, we have introduced various security features on our bars, including both visible and hidden features. Our gold kilobars bear the BullionProtect security ink, which is one of the most visible security (Figure 1). It was developed specifically for our market by SICPA, a Swiss company that is a world leader in passport and banknote inks.

The BullionProtect ink enables batch validation using specific, inexpensive filters or lamps, and authentication of hundreds of bars can be performed in less than a minute, making it the best security available for vaults. Credit card-shaped masks with the appropriate filters are also available for immediate validation (see Figure 3). They reveal different colors and designs, similar to what is found in passports. This solution was recognised by the LBMA as one of the few acceptable security features for gold bars, and it is currently tested or used by other LBMA-accredited refineries around the globe.

To allow individual gold kilobar owners to access specific information on their bars, our kilobars have a unique Datamatrix code in the BullionProtect. This code can be scanned using the iOS Metalor Check application (an Android version will be released soon). The application is completely free, and details such as the manufacturing date and location, purity, and origin of the gold (for segregated refining) can be obtained using it (see Figure 4). This tool also allows confirming that the gold bar meets specific purity requirements, like for the Shanghai Gold Exchange (SGE).

 

With more than 500,000 bars bearing the BullionProtect security feature circulating in the market, Metalor has demonstrated not only the robustness of the system but also its added value for vaults and individual customers alike.

JONATHAN J. JODRY is the Business Development Director for Metalor Technologies, based in Tokyo. With over a decade of experience at the company, he has held positions including Head of Laboratories and Head of New Business Development. Jonathan is deeply involved in the precious metals trade, chairing the ISO/TC 174, serving on the IPMI Awards Committee, and sitting on the Board of the IPMI Foundation. He holds a PhD from the University of Geneva and two Executive MBAs from London Business School and Columbia University of New York.

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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.