The London Bullion Market Association has been accused of causing the deaths of two miners in Tanzania, as it fights for its future as the setter of standards in the world’s largest gold market at the start of a High Court case. The trial began on Wednesday over claims brought against the non-profit members’ association by the families of the two miners, who were allegedly killed by security forces in two separate incidents at the mine in 2019.
The case centres on the LBMA’s so-called “good delivery list” accreditation, which refiners must have to deliver gold into London vaults. This requires them to comply with the industry body’s responsible sourcing rules, designed to prevent gold linked to human rights violations from entering the market. The case could have far-reaching ramifications for centuries-old standards for metals traded in London.
In their opening arguments, the claimants alleged that the LBMA “devised, trumpeted and implemented a responsible sourcing and certification programme which served as a thick smokescreen”. They said the LBMA caused the miners’ deaths by “enabling the commercial viability of operations accompanied by serious abuses”. The LBMA denies liability in full, arguing it is “not responsible in law for either of these deaths”.
The case arises from incidents in July and December 2019 at the North Mara gold mine, about 20km south of the Kenyan border in Tanzania. The mine is owned and operated by Barrick, one of the world’s largest mining companies. Analysts at Peel Hunt said this week that the impact of a win for the claimants across the whole of mining would be “seismic”.
Source: Financial Times Markets · Summarized by HeadlinesBriefing