The London Bullion Market Association (LBMA), the body responsible for key standards governing the global gold market, is facing a potentially landmark legal challenge over the deaths of two men at a gold mine in 2019.
The case, brought by the families of the deceased, is expected to test whether the LBMA can be held legally responsible for alleged human rights abuses at a mine supplying gold to an accredited refiner. As a comprehensive Bloomberg report notes, these proceedings have significant implications for how the precious metals industry oversees its supply chains.
Law firm Leigh Day, representing the families, argues that the LBMA failed to take adequate action despite reports of alleged violence by police providing security at the mine. The allegations were documented in reports published by corporate watchdog RAID from 2014 onwards.
The claimants contend that the LBMA should have suspended, or threatened to suspend, refiner MMTC-PAMP India Pvt from its Good Delivery List unless it stopped sourcing gold from the site. They argue that such action could have pressured the mine to address the alleged abuses and potentially prevented the deaths.
The LBMA disputes the claim, saying it bears no legal responsibility and that the proceedings misconstrue its role in the supply chain. MMTC-PAMP has said it rigorously complies with LBMA responsible-sourcing requirements and undergoes annual independent audits.
Founded in 1987, the LBMA oversees the Good Delivery List, a critical industry accreditation system that identifies refiners meeting established standards for gold and silver bullion. Market participants and exchanges rely on the list, making accreditation essential for many major refiners.
According to that report, a loss in this case could threaten the LMBA's future financial viability; however, the implications extend further. As part of detailed coverage of this case, The Jewelry Wire spoke with Brad Brooks-Rubin, a former US official who previously worked with the Responsible Jewellery Council, who said it may have an ‘outsized impact’ on the broader trade.
“If LBMA wins, there will be even less incentive for audit-backed certification systems to proactively examine the sourcing practices and risks of its members,” he said.
“And there will be a clearer sense that these systems actually don’t have a meaningful remedy or accountability mechanism.”
The case may also influence legal challenges involving other industry certification systems, including those used in precious metals markets.
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