London—The London Bullion Market Association (LBMA), responsible for setting standards in the global gold market, faces mounting pressure from rights groups to strengthen measures aimed at excluding gold tainted by human rights violations or criminal activities from its supply chain.
A coalition of eight organizations, led by Swissaid, issued a letter to the LBMA urging greater scrutiny of refineries vetted by the association. These refineries, according to the groups, continue to source gold from questionable suppliers and mines, turning a blind eye to serious human rights abuses and environmental degradation.
The LBMA responded to queries regarding these concerns, stating its readiness to engage in discussions on various proposals at an upcoming event in London.
Despite initiatives such as the LBMA’s Good Delivery List (GDL), which identifies refiners with robust due diligence systems, rights groups allege that problematic gold still finds its way into the market through these channels. Once gold earns the coveted Good Delivery status, it becomes freely tradable among market players.
While acknowledging some marginal improvements in the LBMA’s systems since 2021, the NGOs contend that many listed refiners have sourced gold from suppliers implicated in money laundering, environmental pollution, and human rights abuses, facilitating the circulation of tainted gold on the global market.
Cases spanning Latin America, Africa, and the Middle East have highlighted these concerns, although specific refiners were not named in the letter.
The groups underscored the pivotal role of the LBMA in setting industry standards and enforcing accountability among its members. They criticized refiners for insufficient engagement with the communities affected by gold mining and emphasized the need for greater transparency regarding gold origins.
Citing an instance from a 2023 report, the letter flagged the United Arab Emirates as the purported origin of nearly 150 metric tons of gold sold to GDL refiners in 2021. The UAE, lacking significant gold mining operations, serves as a transit hub for gold from various sources worldwide. The letter urged refineries to disclose the true origins of gold publicly.
In response, the LBMA committed to addressing specific concerns raised by the groups following a summit on responsible sourcing of minerals scheduled for later this week.
