Auro Resources Trading Inc., the first BSP-Accredited gold trader to use supply chain provenance system
In 2024, the Bangko Sentral ng Pilipinas (BSP) approved PJ Lhuillier Inc (PJLI) as BSP-Accredited Trader under regulatory sandbox approach. The intent of this initiative is to connect the Small-Scale Mining Sector to the BSP, to increase the Gross International Reserves of the country.Under this sandbox phase, PJLI was allowed to purchase gold from BSP-registered small-scale miners in T’boli (South Cotabato), Paracale (Camarines Norte), Itogon (Benguet) and Sagada (Mt. Province). The sandbox ran from February to December 2024. After its success,from January 2025, Auro Resources Trading Inc, an affiliate of PJLI, continues this initiative as BSP-Accredited Trader, and further expand financial inclusion for the Small-Scale Mining Sector.
Under RA7076, People’s Small-scale Mining Act of 1991, all gold production from the Small-Scale Mining Sector must be sold to the BSP. However, as of current on estimate, BSP is only able to purchase less than 5% of the total gold production of the small-scale miners, mainly due to lack of formalization in the sector and proximity of small-scale miners to BSP Gold Buying Stations. There are only five BSP gold buying stations nationwide while there are 63* declared Minahang Bayan or People’s Small-Scale Mining Areas, and 209* more pending for declaration (source, latest data available: *Mines and Geosciences Bureau, Philippine Mining Industry Statistics, September 6, 2024).
Backed by its TechBrick strategy, PJ Lhuillier Group of Companies (PJLGC) is in the best position to help BSP reach the small-scale miners. Through its innovation programs, it was able to develop a Supply Chain Provenance System running on Enterprise Blockchain, which is used to securely trace and record provenance of all gold doré purchased from BSP-registered small-scale miners. And through its 3,500+ network of branches nationwide, under Cebuana Lhuillier, small-scale minerscan efficiently sell its gold production to reach the BSP.
Jean Henri Lhuillier, President and CEO of PJLI, highlighted the strategic impact of this initiative, “Our adoption of blockchain technology in gold trading is a testament to our commitment to digital transformation and financial inclusion. By leveraging decentralized systems and our physical footprint, we’re building a transparent and efficient supply chain that not only empowers small-scale miners but also strengthens the country’s economic resilience through enhanced gold reserves.”
PJLGC continues to innovate and improve its FinTech capacity to contribute to the expansion of financial inclusion in the Philippines, particularly for the sectors with limited reach to formal markets.
ADVT.
This article is brought to you by Cebuana Lhuillier.
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