A Chinese gold mining giant Sanmenxio Jinqu Group has announced that it is ready to set up an international standard, modern gold, gem and jewellery hub in Sri Lanka.
The Chinese firm, Sanmenxio Jinqu Group, backed by the world’s largest physical gold exchange – the Shanghai Gold Exchange- believes that such a hub boosts China’s OBOR (One Belt One Road) plans in the island nation.
“This is the first ever such foreign facility proposed to be set up in Colombo, and it shall also be an extension of China’s One Belt One Road (OBOR) plans on Sri Lanka,” Xu Yujin, the Chairman of Sanmenxio Jinqu Group said meeting with Sri Lanka’s Minister of Industry and Commerce Rishad Bathiudeen on Tuesday (24) in Colombo.
“A modern, state of the art gem and jewellery bourse will uplift Sri Lanka’s gem and jewellery sector in many ways and attract Chinese tourists too,” Chairman Yujin added.
Chairman Yujin, joined by Sanmenxio prefecture city’s Vice Mayor Sun Jiwei and Ms Leah Wan, Director of Jinqu Gold (a subsidiary of Sanmenxio Jinqu Group) leading a seven-member business delegation to Sri Lanka met with Minister Bathiudeen in Colombo.
Joining the session was MNM Ramzeen, Director of Batcha Gems, Colombo 4. Ramzeen’s Batcha Gems has international offices in China and Japan.
Sanmenxio Jinqu Group is a fully state owned mining and refining industry giant based in Sanmenxio city prefecture in Henan Province. China’s largest gold deposit was discovered in Henan’s adjoining province, Shandong, in March 2017.
“We are partnering with Batcha Gems, a well-known Sri Lankan gem and jewellery supplier in China, for many years. We propose a three party joint venture with Batcha Gems, the government of Sri Lanka and Sanmenxio Jinqu with an initial investment of US $30 Million. The main feature is to be tower or a multi-story building where the modern bourse will be located. Along with gold, gem and jewellery shops in the bourse shall be Sri Lankan gem and jewellery suppliers, Lankan banks, customs offices, foreign exchange counters, Chinese restaurants, food suppliers and other Chinese merchandisers. This will be a one-stop shop and a hub for international buyers, shoppers of gold, gem and jewellery in Colombo,” Sanmenxio Jinqu Group Chairman said.
Jinqu Gold Director Ms Wan said that the Group is a member of Shanghai Gold Exchange-world’s largest physical gold exchange. “We also officially represent Shanghai Gold Exchange. The Shanghai exchange is also working to set up the proposed Gold Exchange in Yangon, Myanmar” she added, presenting the official handbook of Shanghai Gold Exchange to Minister Bathiudeen during the meeting.
Minister Bathiudeen welcoming Sanmenxio Jinqu Group’s entry to Sri Lanka said “Your entry shall bring higher competitiveness to Sri Lankan lapidary, gold, gem and jewellery sectors, no doubt.”
He commended Batcha Gems for their effort to bring in high profile international investors to Sri Lanka and said that the Ministry of Industry and Commerce is ready to officially partner with Sanmenxio Jinqu Group in this and he will discuss with higher levels including the Finance Minister on the way forward with regard to the government’s partnering and equity.
“This project will also enhance our gem and jewellery exports,” Minister Bathiudeen added.
Last year, Sri Lanka’s exports of gem and jewellery (other than diamonds) to the world increased by 5.3% (in comparison to 2016) to total at US $178 million.
