NGOs welcome the gold sourcing program from LBMA, the global market authority – DRC
Global Witness, along with four other advocacy groups, said on Tuesday that the London Bullion Market Association’s (LBMA) responsible sourcing program had failed to ensure that only responsibly sourced gold, conflict-free and not contaminated with human rights violations is exchanged. worldwide.
The five organizations also called on the European Union (EU) not to endorse the LBMA, the world’s most influential gold market authority, which would make imports into member countries problematic.
“We had hoped that the publication in September of the first annual responsible sourcing report for LBMA 2020 would address these concerns. We welcome the report, which provides more detail than previous publications, ”the organizations wrote in an open letter to the LBMA.
“However, we are concerned that the report does not go far enough in providing information on where the gold was actually mined [and] sheds little light on the review process. incidents and refiner cases reviewed during the review period, ”they wrote.
Over the past few years, Global Witness, along with other nonprofits, have raised concerns about specific cases, which they say remain unresolved.
Last year, advocacy groups said Swiss refiner Valcambi SA bought large amounts of gold from Dubai-based Kaloti Precious Metals Group, which in turn risked purchasing conflict gold. Sudanese.
Valcambi and Kaloti have denied Global Witness’s findings.
The other case involved India-based refiner MMTC-PAMP, which was part of another large Swiss company, MKS PAMP Group. According to Global Witness, the MMTC-PAMP dealt with gold from mines in Tanzania where there had been allegations of human rights violations.
The LBMA, the largest accreditation for gold refineries, found that both companies were in full compliance with their responsible sourcing standards.
“The serious weaknesses exposed by civil society groups mean that those who buy gold, including Apple and Tesla, or jewelry customers, cannot be sure that the LBMA’s Good Delivery gold is free from human rights violations, ”Anneke Van Woudenberg, executive director of the watchdog company RAID, said in a statement.
Not in line with EU standards
A new conflict minerals regulation entered into force across the EU this year – the Conflict Minerals Regulation. It focuses on four minerals – tin, tantalum, tungsten, and gold – that occasionally fund armed conflict or have been mined through forced labor.
The EU is currently assessing whether existing systems to certify that refiners source gold responsibly comply with the rules that came into effect in January.
If the bloc accepts existing accreditations, it will be easier for gold importers to show that they are complying with the regulations.
Nonprofits argue that LBMA’s Responsible Gold Guidance does not follow due diligence and should not be recognized as meeting European Union standards until there are substantial improvements.
The group identified eleven key issues for the LBMA to address, the three most important being: lack of transparency in annual reports, properly declared origin of refined gold, and weak guidance on suspending trade with suppliers. problematic.
