CIEX No. 8/2022: Procedure for the Purchase of Gold for International Reserves

EXTERNAL CIRCULAR
La Paz, March 2, 2022
CIEX No. 8/2022
FROM: GENERAL MANAGEMENT
INTERNATIONAL OPERATIONS MANAGEMENT
TO: STATE MINING ENTERPRISES
SUBJECT: PURCHASE OF GOLD DESTINED FOR INTERNATIONAL RESERVES

Gentlemen:

In accordance with the provisions of Supreme Decree No. 29165 of June 13, 2007, Supreme Decree No. 1167 of March 14, 2012, and the Regulation for the purchase of gold by State Mining Enterprises destined for International Reserves (REGULATION), approved by Board Resolution of the Central Bank of Bolivia (BCB) No. 046/2012 of April 17, 2012, the procedure for gold purchases to be carried out by the BCB from State Mining Enterprises is detailed below:

1. The State Mining Enterprise (EMIE) will send a note to the Presidency of the BCB, communicating its request to sell gold, specifying and complying with the following requirements:
   a) Quantity of bars and unique consecutive numbering. b) Weight of each bar in grams with one decimal place. c) Name of the officials responsible for coordinating with the BCB the sale of gold bars. d) Summary table of the Purchase and Sale of Minerals and Metals Forms (Form M-02) that make up each gold bar. e) Purchase and Sale of Minerals and Metals Forms (Form M-02) validated by SENARECOM, in originals and legalized copies (the originals will be returned once the review is concluded). f) Accredited laboratory certificate, specifying the percentage of gold, silver, and other elements present in each bar.

2. The BCB, via a note to the EMIE, will confirm acceptance of the request and communicate the date for the receipt of the gold.

3. In response, the EMIE must send a note to the BCB specifying the following data for the day of the gold receipt:
   a) Name(s) and identity card number(s) of the EMIE official(s) who will deliver the gold to the BCB. b) License plate of the vehicle entering the BCB. c) Name and identity card number of the vehicle driver.

4. On the day of the operation, in a secure environment with permanent filming in the BCB building, with the presence of: EMIE officials, a company contracted to perform purity analysis, and BCB officials, the following will proceed:
   a) The receipt of each gold bar. b) The review of the identification seals on each bar. c) The taking of samples by the contracted company for this purpose. d) The weighing of each gold bar. e) The signing of the Gold Delivery/Receipt Act.

5. Three samples will be taken from each gold bar: the first, for delivery to the company that will perform the gold purity analysis; the second, for the EMIE; and the third, in the custody of the BCB, for potential arbitration. Upon completion of this work, the Gold Bar Sample Taking Act will be signed.

6. The weighing of the bars will be carried out after the taking of 2 samples.

7. The gold bars will remain in custody in the BCB vaults until their purchase in accordance with Article 7 of the REGULATION.

8. Upon receipt of the purity percentage analysis from the contracted company, the EMIE and the BCB will sign the Final Liquidation Act for the Purchase-Sale of Gold Bars.

9. The BCB will proceed to make the payment for the gold purchase as provided for in Articles 6 and 7 of the REGULATION.

10. The samples for arbitration of the gold bars that have been paid for and on which the EMIE has no observations will be returned through the signing of a gold sample return act.

11. In the event that the EMIE disagrees with the results of the gold purity analysis, it may perform a test with the sample in its possession at an internationally certified laboratory, the cost of which will be borne by the EMIE.

12. If the results of the laboratory tests conducted by the company contracted by the BCB and by the EMIE differ by more than the error margin established in point 13 below, the sample under the custody of the BCB will be submitted to a test with another internationally certified laboratory. The costs of the binding test will be borne by the party whose laboratory result has the greatest difference compared to the results of the binding test. For payment purposes, the results of the party with the least difference compared to the binding test will be assumed.

13. An acceptable error margin in the analysis of gold purity is established at up to 0.5%.

External Circular SGDB No. 009/2013 of February 26, 2013, is hereby repealed.

Sincerely.

DIGITALLY SIGNED DOCUMENT
Gustavo Sixto Sánchez Rossel
MANAGER OF INTERNATIONAL OPERATIONS
Rubén Gonzalo Ticona Chique
GENERAL MANAGER

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