Kaloti Jewellery Group has broken ground on its 15,000 sq m gold and precious metal refinery which will be built at a cost of $60 million in the heart of Dubai's gold and commodity hub DMCC.

A leading gold and precious metals refiner and a international trading house, Kaloti said the new Dubai Good Delivery precious metals refinery, will be one of the world’s largest with a capacity to refine up to 1400 tons of gold and 600 tons of silver per year as well as PGMs and other metals.

Speaking at the ground breaking ceremony on Monday, the chairman Munir Kaloti said: “The construction of our new refinery is part of the company’s overall strategy to expand its capacity up to 2,000 tons. It is an imperative development in the company’s global growth and institutionalization scheme and will form the basis of our expansion for the next generation.”

In addition, the refinery will produce wholesale investment casted and minted bars as well as jewellery and semi-finished precious metals products, he added.

The group has awarded the construction contract to United Engineering Construction (UNEC) which is likely to complete the project in the first half of 2015.

According to Kaloti, the new refinery will use the most advanced technologies, including the gold and silver electrolysis refining methods, and will feature two laboratories for advanced assaying of gold and silver and other noble metals.

It will also be the first refinery to implement Green Building Standards, stipulated by the Dubai Municipality and EHS with regard to the environment, fire and life safety, security and risk assessment and management, he stated.

Ahmed Bin Sulayem, the executive chairman of the DMCC pointed out that Kaloti’s new facility was a real investment into the long-term future and sustainability of Dubai’s gold trade and in line with DMCC’s continuous drive to enhance the flow of commodities trade through the emirate.

"We would like to congratulate Kaloti on this important milestone and look forward to seeing the new refinery, set to be one of the world’s largest, in operation in 2015," he added.

The ground breaking ceremony was also attended by Ahmed Saffarini, the engineering consultant; A. HalimMuwahid, the managing director of UNEC and Hassan A. Nasereddin, the VP and area manager of Projacs.-TradeArabia News Service