Harmony Gold Mining, South Africa’s third-largest gold producer, is marketing a series of branded gold bars to consumers at home and abroad, with 90% of the product bound for India.
Although South African law prohibits its citizens from holding “unwrought” bullion, the government is considering relaxing these rules. Also, there remains uncertainty about the legal definition of “unwrought” gold under existing legislation.
The Mining Rights Act of 1967 defines unwrought precious metal as “any unmanufactured precious metal in the form of bars, ingots, wire, granules or in solution.” But new guidelines are expected to be in the Beneficiation Bill, part of the country’s new mining legislation.
Meanwhile, working with an interpretation of the term “unzzwrought,” Harmony has produced small gold bars and medallions that are machined and hand-buffed, classifying them as products that can be held legally.
Harmony says financial institutions have shown interest in the investment bars, which carry a premium of 4-5%.
The company now offers a “120 bar,” weighing 120 grams, and several medallions, in addition to its popular 10-tola (3.75-oz.) bar, introduced in 1999.
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