The London Bullion Market Association faces a legal battle next week that could threaten its existence and reshape how the gold industry polices its supply chain. The LBMA is being sued by the families of two men, both aged 23, who died at Tanzania's North Mara mine in 2019. If the court orders significant payouts, the industry body could become insolvent, prompting internal discussions about a successor body.
London's role as global gold standard-setter dates to 1750, when the Bank of England created the Good Delivery List. The LBMA took over that list in 1987 and expanded its scope to include responsible-sourcing rules for refiners. The case will test whether the association can be held accountable for deaths at North Mara, given that some mine output was sold to Good Delivery List refiners.
Leigh Day, the firm bringing the claim, argues the LBMA acts as a "quasi-regulator" and that the alleged abuses could have been avoided if rules were "properly and fearlessly applied." Barrick Mining Corp., the majority owner of North Mara, declined to comment, while Tanzanian police did not respond. Several insiders expect the LBMA to prevail but acknowledge the case could have seismic consequences for the London gold market.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing