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Deleterious Elements in Gold Shipments

This document outlines acceptable impurity levels in gold shipments. It lists various elements that are considered deleterious if they exceed certain levels, including iron, copper, zinc, lead, nickel, bismuth, mercury, arsenic, cadmium, antimony, selenium, tin, and tellurium. Penalties will apply if gold deliveries contain impurities over these levels. It also classifies common impurities into two classes: class I impurities like mercury and arsenic that are hazardous, and class II impurities like lead, tin, and bismuth that can disturb refining processes. The document gives the buyer rights to reject shipments or charge additional fees if gold contains impurities above the stated levels

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Adi Hamdani
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49 views1 page

Deleterious Elements in Gold Shipments

This document outlines acceptable impurity levels in gold shipments. It lists various elements that are considered deleterious if they exceed certain levels, including iron, copper, zinc, lead, nickel, bismuth, mercury, arsenic, cadmium, antimony, selenium, tin, and tellurium. Penalties will apply if gold deliveries contain impurities over these levels. It also classifies common impurities into two classes: class I impurities like mercury and arsenic that are hazardous, and class II impurities like lead, tin, and bismuth that can disturb refining processes. The document gives the buyer rights to reject shipments or charge additional fees if gold contains impurities above the stated levels

Uploaded by

Adi Hamdani
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

A GOLD GENERAL TRADING FZC

Registered Address: Business Center, Al Shmookh Building, UAQFTZ, Umm Al Quwain, PO Box 888906, Dubai, United Arab Emirates
License#: 4932 Import/Export Code#: 56679 Mirsal II Code#: AE-7001741
Correspondence Address: 1 Moh’d Bin Rashid Blvd, Burj Khalifa Tower, Suite 3312, PO Box 888906, Dubai, United Arab Emirates
Cell for Voice Only: +971562101000 Cell for SMS Only: +971564992799 Fax (UK): +442076811978
info@[Link] [Link]

Deleterious Elements
The Seller shall advise Buyer in advance prior to shipment if the Gold contains any of the following deleterious elements which
exceed Iron 2.00%; Copper 10.00%, Zinc 5.00%, Lead 2.50%, Nickel 2.00%, Bismuth 0.50%, Mercury 0.20%, Arsenic 0.20%,
Beryllium 0.20%, Cadmium 0.50%, Antimony 0.50%, Selenium 0.20%, Tin 0.20%, and Tellurium 0.20%.
Penalties will apply should the Gold delivered to Buyer contain levels in excess of these levels. Additional charges due to the
excessive impurity content of the gold will be deducted from the amount payable to the Seller. Buyer has the right to refuse
acceptance of the gold and keep the Performance Bond proceeds as penalty, besides having the right to take the Seller to
court for further damages.
In the following the most common impurities in refining material are specified and limits are formulated below which the
material is acceptable without additional amounts being charged to the Supplier.
These limits are to be considered as indications by Buyer and have to be re-evaluated depending on the material and the
process of refining it is destined for.

Class I: Impurities, which are hazardous to personal and environment:


Element acceptable levels
Radioactive none
Mercury Hg none
Arsenic As max. 100 ppm
Cadmium Cd max. 100 ppm

Class II: Impurities, which can disturb the refining process and as well influence the environmental protection processes:
Element acceptable levels
Lead Pb max. 2.5%
Tin Sn max. 3%
Selenium Se max. 500 ppm
Tellurium Te max. 500 ppm
Bismuth Bi max. 100 ppm
Antimony Sb max. 100 ppm

There are other elements, which may be present in refining material, that do not have hazardous properties or disturb the
processing significantly if present in minor quantities, but may disturb severely the homogenization and sampling due to the
fact that they produce a heavy segregation when the Gold solidifies. These elements in particular are: Iron (Fe), Nickel (Ni)
and Cobalt (Co). This list is not representative for all material compositions and subject to adjustment by in case of necessity.
In case the Dore bars or alluvial Gold in form of powder supplied by the Seller contain impurities that are deleterious to other
persons or to the refining process, the Buyer shall have the right to either
 Reject the Shipment; all expenses incurred by the Buyer in connection with the rejected Shipment being for the account of
the Seller, or

 Ask for additional payments from the Seller in order to cover any additional cost that the Buyer incurs in connection with
such deleterious elements

Common questions

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If the gold contains deleterious elements exceeding the specified limits, the buyer has several remedies. They can refuse to accept the gold, deduct additional charges due to excessive impurity content from the payable amount, and keep the proceeds of the Performance Bond as a penalty. Furthermore, the buyer has the right to take the seller to court for further damages .

A seller must advise the buyer in advance if the gold contains deleterious elements that exceed specified thresholds before shipment. This ensures transparency and allows the buyer to prepare for any necessary handling adjustments or decisions regarding acceptance or additional charges .

Class I impurities are hazardous to both personal safety and the environment, with specific elements like Mercury and Arsenic having stringent non-acceptance or lower acceptable limits. Class II impurities are those that can disturb the refining and environmental protection processes; elements like Lead, Tin, and Selenium fall in this category, each with their specific permissible limits. The classification system distinguishes between safety hazards and process disturbances, emphasizing different handling and penalization approaches based on the class of impurity .

If a shipment contains environmentally hazardous impurities, the buyer has the right to either reject the shipment, with associated costs charged to the seller, or demand additional payments to cover the costs incurred due to these impurities. This ensures protection for the buyer from the adverse effects of such impurities, focusing on environmental safety and process efficiency .

If the gold contains impurities complicating homogenization such as Iron, Nickel, or Cobalt, the refining process could become inefficient or more costly, indirectly affecting the seller financially through potential additional processing fees or deductions from payments. Although these impurities are not directly hazardous, they challenge the refinement process's efficiency, thus imposing economic burdens on the seller .

Although elements such as Iron, Nickel, and Cobalt are not directly hazardous, they can significantly disturb the homogenization and sampling processes due to heavy segregation when gold solidifies. This issues can complicate refining procedures, leading to uneven distribution of elements, and thereby affecting the efficiency and effectiveness of the refining process .

The performance bond acts as a financial guarantee for the buyer, which can be utilized as a penalty if the seller delivers gold with impurity levels exceeding the acceptable standards. If breach occurs, the buyer can keep the performance bond proceeds as compensation, in addition to other legal remedies like suing for further damages, thereby acting as both a deterrence and compensation mechanism .

Penalties for delivering gold with impurities beyond acceptance levels include additional charges deducted from the seller's amount payable and retention of the performance bond by the buyer. Additionally, the buyer may refuse the gold and pursue legal action for further damages. This range of penalties underscores the severity of compliance with impurity standards in gold contracts .

Mercury and Arsenic are categorized as Class I impurities due to their high toxicity and potential harm to both personal health and the environment. Their acceptable levels are set very low (100 ppm for Arsenic) or as entirely non-acceptable (for Mercury) to prevent hazardous exposure and environmental contamination. Compared to Class II impurities, these elements are more hazardous, justifying stricter acceptance criteria in gold refining standards .

The buyer's ability to refuse shipment or demand additional payments places a responsibility on the seller to ensure that the gold meets the specified purity standards before shipment. This contractual leverage ensures accountability from the seller and protects the buyer's interests, making it crucial for sellers to adhere to standards and verify purity to avoid financial liabilities and damaged relationships .

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