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Gold Refining: Switzerland’s Leadership Amid Traceability Challenges
Switzerland is home to some of the world’s largest gold refineries, thanks to its strategic industrial and technical expertise. In this second instalment of our series on gold, Luxury Tribune takes us behind the scenes at Argor-Heraeus in Mendrisio, at the heart of an industry where refining expertise, metal traceability, the securing of more responsible supply chains and geopolitical issues are closely intertwined.
2.5 Mt
Amount of gold sourced from responsibly mined sources refined by Argor-Heraeus in 2025
€40.36 Bn
Revenue of the German Heraeus Group’s global precious metals division in 2025
16 Mt
Total annual amount of Mongolian gold refined by Argor-Heraeus (number subject to change)
Argor-Heraeus represents nearly half of the precious metals market within the watchmaking supply chain
Robin Kolvenbach, CEO of Argor-Heraeus SA
Switzerland’s major gold refiners (Argor-Heraeus, Metalor, Valcambi and MKS PAMP) are now among the industry’s global heavyweights. While some of their origins date back to the 19th century, their international influence truly began to take shape in the late 1960s. The year 1968 marked a decisive turning point. Following the collapse of the London Gold Pool, UBS, Swiss Bank Corporation and Credit Suisse established the Zurich Gold Pool, helping make Zurich a major hub for the global gold trade. Swiss banks, which at the time held stakes in several major refineries, developed an integrated value chain combining trading, financing, storage and refining. According to a 1991 study published by the IMF, between 1968 and 1989, Swiss gold imports accounted for an average of nearly 65% of newly mined gold supplied to the global market.
The theoretical capacity of each Swiss refiner today often exceeds 1,000 tonnes per year. However, tracing the precious metal back to its source, making this information accessible, verifying compliance with the LBMA’s Good Delivery rules, ensuring its segregation, and then refining it to a purity level of 99.99% are not all steps that each of these players systematically implements. The issue often lies in the transparency of communications regarding the gold-producing mine. Failing to disclose an entire supply chain is not necessarily illegal. However, concealing or falsifying the origin of gold may violate LBMA rules and current legal due diligence obligations governing supply chains.
Going inside a refinery is therefore essential to understanding a significant part of this process.
A comprehensive visit was arranged at Argor-Heraeus in Mendrisio. On that day, the refinery was also welcoming Mongolia’s Ambassador to Switzerland, Davaasuren Gerelmaa, and her consul, Sainjargal Enkhtsetseg. Their presence was not insignificant. The strategic stakes are considerable for this country, which is rich in gold and copper deposits and has entrusted Argor-Heraeus with refining its 16 metric tons of gold annually (a figure that may vary) under an exclusive contract for the past ten years. The benefit? Leveraging the Swiss refinery’s strong standing with the LBMA (London Bullion Market Association), both in terms of quality and reputation, which guarantees access to global markets.
In Mongolia, discussions are underway to go a step further and develop domestic refining capabilities, a process that would take several years. Beyond the necessary infrastructure, establishing a local refining industry would require the ability to trace the metal’s origin, manage associated risks, and establish credibility among international buyers.
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A Swiss Model
Switzerland’s position has thus been built not only on industrial capacity, but also on a combination of regulation, expertise and reputation.
Argor-Heraeus is part of this model. Founded in Chiasso in 1951, the company has been owned by the German Heraeus Group since 2017. The latter, which is family-owned, reported revenue of €43.19 billion in its 2025 financial report, up 46.9% from the previous year, of which €40.36 billion came from the precious metals division. The group’s two other profitable divisions are healthcare (€899.9 million) and semiconductors and electronics (€793.6 million).
The refinery processes materials from a wide range of sources: industrial and jewellery scrap, metals from artisanal, medium-scale and large-scale mines, depending on their origin, as well as investment bars. Its activities connect upstream mining operations with financial markets, as well as watch and jewellery manufacturers. According to Robin Kolvenbach, CEO of Argor-Heraeus SA: “Argor-Heraeus represents nearly half of the precious metals market within the watchmaking supply chain.”
Argor-Heraeus, however, maintains strict client confidentiality. Despite the plaques bearing the name of a prestigious Geneva-based brand displayed at the refinery’s entrance, the company does not disclose the names of individual clients. Long-standing relationships with jewellery and watchmaking houses are built on trust, another value deeply rooted in Switzerland that further reinforces the strengths of the Swiss precious metals hub.
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