Article 9. The priority right of the State to purchase refined gold to replenish assets in precious metals The Law on Precious Metals and Precious Stones

Home / RLA / Article 9. The priority right of the State to purchase refined gold to replenish assets in precious metals The Law on Precious Metals and Precious Stones

1. The state has the priority right to conclude transactions for the purchase of refined gold to replenish the assets of the National Bank of the Republic of Kazakhstan in precious metals with entities producing precious metals and persons who have become owners of refined gold as a result of processing.

2. Subjects of production of precious metals and persons who have become owners of refined gold as a result of processing shall sell refined gold produced in the territory of the Republic of Kazakhstan or abroad on a priority basis to the National Bank of the Republic of Kazakhstan.

3. Entities producing precious metals and persons who have become owners of refined gold as a result of processing shall submit to the National Bank of the Republic of Kazakhstan schedules for the forecast of production and sale of refined gold for the first half of next year until November 1 of this year, for the second half of this year – until May 1 of this year.

4. The National Bank of the Republic of Kazakhstan, based on the forecast of production and sale of refined gold, the state of the money market, indicators of monetary policy and the conjuncture of international financial markets, approves the acquisition limit as part of the implementation of the priority right for the coming six months or decides on the non-realization of the priority right as a whole for the coming period (from one month to six months)..

Within the approved purchase limit, the National Bank of the Republic of Kazakhstan determines the volumes of refined gold to be purchased in the coming half-year from each precious metal production entity or a person who became the owner of refined gold as a result of processing, who provided a forecast schedule for the production and sale of refined gold.

The volume of purchases or the decision to refuse to exercise the state's priority right to purchase refined gold for the coming period are brought to the attention of precious metal production entities and persons who have become owners of refined gold as a result of processing, for the first half of next year until December 1 of this year, for the second half of this year – until June 1 of this year.

The National Bank of the Republic of Kazakhstan is obliged to fully acquire the acquisition volumes brought to the subjects of production of precious metals and persons who have become owners of refined gold as a result of processing.

In the event that the expected volume of production and sale of refined gold exceeds the volume of production and sale of refined gold submitted to the National Bank of the Republic of Kazakhstan in accordance with paragraph 3 of this Article, the subjects of production of precious metals and persons who have become owners of refined gold as a result of processing, additionally submit to the National Bank of the Republic of Kazakhstan modified schedules for the forecast of production and sale refined gold.

Within fifteen working days from the date of receipt of the modified forecast schedules for the production and sale of refined gold, the National Bank of the Republic of Kazakhstan informs the subjects of precious metals production and persons who have become owners of refined gold as a result of processing, respectively, the modified volume of purchases of refined gold or informs about the unchanged previously reported volume of purchases of refined gold by sending a waiver from the acquisition of new volume in accordance with the changed schedules.

5. The sale of refined gold by entities producing precious metals and persons who have become owners of refined gold as a result of processing, as raw materials for the production of jewelry and other products to entities producing jewelry and other products in the territory of the Republic of Kazakhstan before reaching the limit determined by the National Bank of the Republic of Kazakhstan, is carried out in accordance with the procedure for exercising the state's priority right to purchase refined gold to replenish assets in precious metals.

6. The purchase of refined gold within the framework of the implementation of the priority right of the state is carried out at prices calculated using prevailing prices on the international market, minus transportation costs, selling costs and quality discounts, which are applied in the case of the purchase of refined gold that does not meet international quality standards adopted by the London Precious Metals Market Association and indicated in the documents of this associations as a standard of "London quality delivery" ("London good delivery").

7. The acquisition of refined gold as part of the implementation of the priority right of the state is carried out on the basis of an agreement concluded by the National Bank of the Republic of Kazakhstan with a precious metal producer or a person who became the owner of refined gold as a result of processing on the general terms of purchase and sale of refined gold to replenish assets in precious metals.

8. The National Bank of the Republic of Kazakhstan has the right to refuse to exercise the state's priority right to purchase refined gold to replenish assets in precious metals in cases of reaching the acquisition limit and (or) if there is a decision not to exercise the priority right for the coming period in accordance with the first part of paragraph 4 of this Article.

The grounds provided for in the first part of this paragraph shall not apply to subjects of production of precious metals and persons who have become owners of refined gold as a result of processing, within the limits of the volumes of acquisition of refined gold brought to them.

9. If the National Bank of the Republic of Kazakhstan refuses to exercise the state's priority right to purchase refined gold from precious metal production entities or persons who have become owners of refined gold as a result of processing, this refined gold may be sold to third parties.

The Law of the Republic of Kazakhstan dated January 14, 2016 No. 444-V SAM.

This Law regulates public relations arising in the sphere of production of precious metals and turnover of precious metals and precious stones, raw materials containing precious metals, jewelry and other products made of precious metals and precious stones.

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