african gold transactions richard pearson · syama. country mine name average weight per shipment...
TRANSCRIPT
African Gold Transactions
Richard PearsonDirectorJohn Pearson & Associates (Pty) Ltd
Gold in Africa
The global average annual production of gold over the past five years is approximately 2,400 metric tons (MT). African countries account for 20% of that volume (480MT). The continent’s largest producer is South Africa, averaging close to 250MT per annum, slightly over half of the continent’s production and about 10% of global production. In fact, it is the only African country featuring among the top 10 gold producers in the world. The other key gold-producing African countries are Ghana, Mali, Tanzania and Guinea. In total, there are at least 34 African countries producing gold.
Gold in Africa
Gold Production - Africa
Gold Producing Countries and
CompaniesCountry Mine Name Average weight per shipment
Botswana Mupane 150Kg
Burkina Taparko 220Kg
Inata
Bissa
DRCNamoya
220Kg
Twangiza
Kibali
GuineaSiguiri
250Kg
Kineiro
Lefa
Country Mine Name Average weight per shipment
GhanaTarkwa
600Kg
Abosso
Iduapriem
Obuasi
Wassa
Bogoso
South Ashanti
Edikan
Prestea
Chirano
Country Mine Name Average weight per shipment
Ivory CoastTongon
500Kg
Bonikro
KenyaKarebe
100Kg
Kilimapesa
MaliMorila/Sadiola/Yatela
400Kg
Loulo
Tabakoto
Kalana
Syama
Country Mine Name Average weight per shipment
NamibiaNavachab
120Kg
TanzaniaGeita
350Kg
North Mara
Bulyanhulu
Tuluwaka
Shanta
ZambiaKansanshi
120Kg
ZimbabweCaledonia
100Kg
Illegal Mining / Artisanal Mining
• An artisanal miner or small-scale miner is, in effect, a subsistence miner.
They are not officially employed by a mining company, but rather work
independently, mining or panning for gold using their own resources.
• In most cases they operate in areas demarcated for formal mining
operations.
Country
Average
weight per
shipment Shipped via Note
Burkina 30kg-90kg Ministry of Mines & Customs
DRC
40kg-
120kg CEEC Frank Dodd Act/OECD
Ghana
15kg-
150kg PMMC Many shipments finding there way into neighbouring countries
Guinea
15kg-
150kg BCRG
Ivory Coast 30kg-80kg Central Bank
Kenya 10kg Customs & Central Bank Often ex DRC - Frank Dodd/OECD
Mali
20kg-
100kg Ministry of Mines Ministry of Mines
Tanzania 15kg Tansort/TRA Often ex DRC - Frank Dodd/OECD
Uganda
15kg-
100kg Reserve Bank/Customs Often ex DRC - Frank Dodd/OECD
Zambia 30kg Customs Often ex Angola or DRC - Frank Dodd/OECD
Zim
10kg-
120kg Fidelity Printers Finding there way into Mozambique
• Sierra Leone – GDDO (Gold & Diamond office)
• DRC – CEEC (Kinshasa and now Bukavu)• Ghana – PMMC (All gold which has not
been collected directly from a mine)• Guinea – BCRG (Central Bank in Conakry)• Tanzania - Tansort as well as TRA
(Revenue authority)
# Frank Dodd Act is from the US andbasically means you should notexport from a country that borders the DRC, unless of course it’s comevia CEEC.
Channels to Export
Shipments
The figures presented above are average weights taken across all the mines.
The likes of Goldfields etc, would ship higher weights but the others ship generally around 100kg or so.
For the mines shipments are done generally 3 times a month for smaller mines and weekly for the larger operators.
Artisans try ship smaller shipments weekly and generally carry product across borders themselves (uninsured) into Dubai or India.
How Gold is Extracted
Miners
Miner
Artisanal Miners
Brokers
Miner
Processing
Scams
• Tanzania - Mwanza
Scams
Kenya
• Precious Metals Company with a UK listing.
• Loss involved 50kg of Gold valued at US$850,000
• Client coerced into a gold transaction without conducting any due diligence.
• Client made numerous visits to Kenya, inspected gold which was then paid for without any formal assay being undertaken.
• Client relied on integrity of seller to export product to Dubai and Hong Kong which never arrived.
• Subsequent investigation following the submission of a claim revealed this to be a bogus transaction and all relevant documentation including agreements and export papers proved to be false.
• Copies of the relevant documentation used in this gold scam will be available for discussion during the workshop period.
Scams
• Ghana – Sample swapping
• Ghana – False documentation
• Kinshasa – Misrepresentation of product
Insurance
• Lloyds Policy
• Credit Applications at Banks
• Falsified Documentation
Due Diligence to Reduce
Claims
• To Reduce Claims
– Questionnaires must be completed
– Site Visits:
• Mine Inspection / licences
• Source of Gold
• Ministry of Mines
• Assay
• Verification of Documentation
• Transit risks
Percentage of Successful Gold
Transactions
Out of 100%
97% are tainted with
fraud
Conclusion
• This presentation provides a general overview of what we have encountered as Loss Adjusters dealing with Gold related enquiries in Africa.
• Whilst there are many legitimate gold transactions coming out of Africa, Underwriters should be particularly cautious when being approached to write this type of business and should not do so under any circumstances unless a proper survey in undertaken.
• We thank you for your time and now open to floor for questions.