What is a gold potassium cyanide project report?
A gold potassium cyanide project report is a detailed project report (DPR) for a plant that converts fine gold into potassium gold cyanide. This white crystalline salt carries about 68.3% gold and feeds gold electroplating baths. The report covers process route, machinery, cyanide safety, approvals, project cost, finance and five-year projections.
Promoters use it to size the plant and raise a term loan; plating chemical firms and refiners use it to test whether conversion margins justify the investment.
Also known as: GPC project report, project report on gold potassium cyanide, potassium gold cyanide plant DPR, gold potassium cyanide business plan, potassium dicyanoaurate manufacturing report.
Gold potassium cyanide manufacturing plant cost in India
The sample report models a conversion plant of 3.1 kg of salt per day, or 1,023 kg a year over 330 working days. Utilisation starts at 60% and reaches 80% in Year 5.
Revenue is the conversion charge of ₹45,200 per kg. The buyer supplies the gold or pays for it separately, so the gold itself is not in sales, raw materials or working capital.
| Land and site development | 14.83 |
|---|---|
| Building and civil works | 72.35 |
| Plant and machinery | 130.07 |
| Other fixed assets | 17.60 |
| Contingencies | 10.12 |
| Preliminary and pre-operative | 6.12 |
| Working capital margin | 10.63 |
| Total | 261.72 |
| Promoter's contribution (25%) | 65.43 |
|---|---|
| Term loan from bank (75%) | 196.29 |
| Cash credit limit (separate) | 31.88 |
| Total project cost | 261.72 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. DSCR (debt service coverage ratio) is cash available for repayment divided by the loan instalments due. All figures are illustrative.
Gold potassium cyanide manufacturing process
The salt is made in small, closely controlled batches. Every gram of gold is weighed in and accounted for out, because the gold is worth far more than the conversion charge.
- Gold preparation
Fine gold of 99.99% purity is weighed, logged against the customer or order, and rolled into thin sheet so it dissolves faster.
- Electrolytic dissolution
The sheet is dissolved as the anode in potassium cyanide solution inside a membrane cell, with the rectifier holding current steady.
- Crystallisation
The gold solution is concentrated and cooled at a controlled rate so clean white crystals form instead of fine, impure powder.
- Filtration and washing
Crystals are separated on a vacuum filter and washed; the mother liquor still holds gold and goes back for recovery.
- Drying
Crystals are dried at low temperature in a vacuum oven, since overheating discolours the salt and lowers its value to platers.
- Assay and packing
Each batch is assayed for gold content of about 68.3% and packed in sealed, labelled containers from 1 gram to 1 kg.
- Effluent treatment
Rinse water and spent solutions go through cyanide destruction and a final gold recovery step before any discharge.
Electrolytic or chemical route: which should a new GPC plant use?
The chemical route dissolves gold in aqua regia, a mix of nitric and hydrochloric acid, then converts it to the cyanide salt. It needs little equipment, but it releases nitrous fumes and passes through an intermediate that becomes explosive if it dries.
Chloride carried over from the acid stage is a common cause of yellowing salt and off-spec baths. Electronics platers are strict about it, so a chloride-free salt sells more easily to them.
The electrolytic route dissolves gold directly in cyanide solution in a membrane cell. It costs more to install, but there is no acid stage, fewer fumes and a cleaner, more consistent salt. Equipment makers sell packaged plants rated by daily gold or salt output, which makes capacity planning simpler.
What lenders look for: a named, proven route with a supplier guarantee on output and gold recovery. The sample report assumes the electrolytic membrane route for this reason.
Raw materials for gold potassium cyanide
On a conversion basis the costliest input is not cyanide but the gold the plant loses and must make good. In the sample, raw materials are 37.5% of sales, and gold make-up is 70% of that.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Gold make-up for process loss | 70% | 84.89 |
| Potassium cyanide | 12% | 14.55 |
| Membranes and electrode consumables | 8% | 9.70 |
| Potassium hydroxide and potassium carbonate | 5% | 6.07 |
| Demineralised water and filter aids | 5% | 6.06 |
| Total | 100% | 121.27 |
Potassium cyanide should be bought only from licensed dealers, with every receipt and issue entered in a stock register.
Machinery for a gold potassium cyanide plant
The membrane dissolution cell is the largest machinery item in the sample, followed by the fume scrubber and cyanide destruction plant. Together they are close to half of plant and machinery cost.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Electrolytic membrane dissolution cell with rectifier | Dissolves gold in cyanide solution | 36.42 |
| Fume scrubber and cyanide destruction effluent plant | Treats fumes, rinses and spent liquor | 23.41 |
| Evaporator and crystalliser | Concentrates solution and grows crystals | 20.81 |
| Assay laboratory equipment | Checks gold content of every batch | 13.01 |
| Gold sheet rolling mill | Rolls fine gold into thin sheet | 7.81 |
| Vacuum filter and washing unit | Separates and washes crystals | 7.81 |
| Vacuum drying oven | Dries crystals at low temperature | 7.80 |
| Demineralised water plant | Supplies low-salt process water | 7.80 |
| Chiller and compressed air system | Cools condensers, runs pneumatics | 5.20 |
| Total plant and machinery | 130.07 | |
Costs are the sample report's estimates for a 3.1 kg per day plant. Get current quotations before you finalise.
Utilities, manpower and safety systems
A GPC plant is small in floor area but heavy on controls. Most of the building cost goes into a secure gold room, a ventilated process hall and a separate cyanide store.
| Power | Steady supply for the rectifier, oven, chiller and scrubber; ₹27.10 lakh in Year 3 in the sample, 8.4% of sales |
|---|---|
| Process water | Demineralised water for solutions and washing, since dissolved salts end up as impurities in the crystals |
| Manpower | 11 people in the sample; a real plant names a chemist for assays and operators trained in cyanide handling |
| Fume control | Local exhaust over every open vessel, led to an alkaline scrubber, with gas detection in the process hall |
| Effluent | Segregated collection of cyanide-bearing streams, destruction to permitted limits and gold recovery before discharge |
| Gold security | Strong room, CCTV, weighed entry and exit of gold, and insurance for gold in process and in stock |
Licences and approvals for a gold potassium cyanide unit
Cyanide brings this plant under rules that ordinary metal or chemical units do not face. Plan approvals early, because the safety documents take longer than the machinery order.
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Hazardous chemical rules | Potassium cyanide is listed in Schedule 1 of the Manufacture, Storage and Import of Hazardous Chemical Rules, 1989: safety data sheets and labelling apply, and further duties depend on the quantity held |
| Poisons licence | States licence the storage and sale of cyanides under the Poisons Act, 1919 (in Punjab through the District Magistrate, valid five years); a 2021 Home Ministry advisory asks states to exempt units covered by the hazardous chemical rules, so check your state's position |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; the category follows the board's list under the CPCB harmonised classification of February 2025 |
| Factory licence | Under the Factories Act, with the cyanide process and gold room shown in the approved plan |
| Fire NOC | From the state fire service, covering the chemical store and process hall |
Rules checked in October 2026 from the sources listed below. Confirm current requirements with your state authorities before applying.
Who buys gold potassium cyanide, and how is it priced?
Demand comes from gold electroplating. Imitation jewellery clusters plate large volumes with thin gold layers, while electronics platers use less salt but pay for higher purity and documented assays.
Platers buy small packs, often 1 to 50 grams, and stay with a supplier whose assay they trust. A new plant usually starts with distributors and jewellery platers, then qualifies with electronics buyers.
- Imitation and fashion jewellery platers
- Electronics and printed circuit board platers
- Plating chemical distributors
- Watch, pen and accessory component makers
- Gold refiners and bullion dealers offering plating salts
Gold value versus conversion charge: the salt is priced on its gold content at the day's gold rate plus a conversion charge. Your margin is only the conversion charge, so a report that books the full gold value as sales overstates the business many times over.
Mistakes that weaken a gold potassium cyanide project report
- Counting gold value as revenue
Turnover looks huge but margins look tiny, and the bank cannot tell what the unit actually earns per kg.
- No allowance for gold loss
Some gold stays in filters, vessels and effluent. Without a loss figure and a recovery plan, cost per kg is understated.
- Under-insuring gold in process
Gold held for customers can be worth crores. Insurance and security must match the peak gold on site, not the plant value.
- Leaving out cyanide destruction
A plant without a costed effluent system will not get consent to operate, and the loan stalls after machinery arrives.
- No assay control in the plan
A short gold content loses buyers quickly; the report should show the lab, the method and who signs each assay.
How NPCS helps you plan a gold potassium cyanide plant
- Gold model and capacityChoose between conversion and outright sale, and size daily output to your buyers.
- Route and equipmentCompare electrolytic and chemical routes and line up supplier quotations.
- Bank-ready project reportProjections, DSCR, gold loss and working capital in your lender's format.
- Approvals and layoutGold room, cyanide store, effluent plant and the approvals list for your state.
NPCS's client list shows 116 assignments in metal products. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the gold potassium cyanide sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS gold potassium cyanide project reports
These are gold potassium cyanide project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Gold Potassium Cyanide | 250 Grm/Day | ₹75 lakh | 88.6% | 27.5% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Gold Potassium Cyanide project report: frequently asked questions
What is gold potassium cyanide used for?
Gold potassium cyanide is the gold source in most gold electroplating baths. Platers dissolve it to coat imitation jewellery, electronic connectors, printed circuit boards, watch parts, pens and religious articles with a thin layer of gold. Electronics work needs a high-purity salt with low chloride and metal impurities, while decorative platers mainly look for an assured gold content.
How much gold does gold potassium cyanide contain?
Commercial gold potassium cyanide contains about 68.3% gold by weight, so 1 kg of salt holds roughly 683 grams of gold. Platers dose their baths by gold content, which is why every batch must be assayed and the assay shown on the label. A short assay is the most common complaint against small suppliers.
How much does it cost to set up a gold potassium cyanide plant in India?
Our sample report models a 3.1 kg per day plant at a total project cost of ₹261.72 lakh, with plant and machinery at ₹130.07 lakh. A smaller unit of under 1 kg a day still needs an indicative ₹1.5–2 crore once the building, effluent treatment and gold security are added. The value of gold held in process is extra and depends on your trading model.
Which process is used to make gold potassium cyanide?
Most new plants use the electrolytic route. Fine gold is dissolved as an anode in potassium cyanide solution inside a membrane cell, then the salt is crystallised, filtered, dried and assayed. The older chemical route first dissolves gold in aqua regia and passes through an unstable intermediate, so it carries a higher safety and purity risk.
Which licences are needed for a gold potassium cyanide unit?
Besides Udyam, GST, factory licence and State Pollution Control Board consent, the unit must follow the Manufacture, Storage and Import of Hazardous Chemical Rules, 1989, which list potassium cyanide. Most states also licence cyanide storage and sale under their poisons rules. A 2021 Home Ministry advisory asks states to exempt units already covered by the hazardous chemical rules.
Is gold potassium cyanide manufacturing profitable?
In our illustrative sample, a 3.1 kg per day plant earns a conversion charge of ₹45,200 per kg. It returns 25% on investment in Year 3, breaks even at 33% of capacity and pays back in about 3.2 years. Real profit depends on the conversion charge you can hold, gold loss per batch, assay accuracy and steady orders from platers.
Is the sample report free and can I use it for a bank loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative, not based on a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, gold model, location and lender.
Sources and references
- The Manufacture, Storage and Import of Hazardous Chemical Rules, 1989Inspectorate of Factories and Boilers, Government of Goa, checked Oct 2026
- Poisons Act, 1919: model rules and advisoriesMinistry of Home Affairs, Government of India, checked Oct 2026
- Punjab Poisons (Possession and Sale) Rules, 2014Department of Health and Family Welfare, Government of Punjab, checked Oct 2026
- Revised categorisation of industries (Red, Orange, Green, White)Maharashtra Pollution Control Board, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.