Page 28 - Bullion World Volume 4 Issue 5 May 2024_Neat

Bullion World | Volume 4 | Issue 5 | May 2024

LBMA Response to Concerns Regarding

Human Rights Abuses and Presence of

Illegal Gold in Global Supply Chain

Civil society engagement enables stakeholders to anonymously report concerns
The LBMA acknowledges the challenges in the gold related to mineral supply chains, triggering investigations
supply chain and appreciates your input towards by the implicated Refiners. Non-compliance may result
enhancing the Responsible Gold Guidance (RGG). Since in GDL status suspension. LBMA stresses responsible
its inception in 2012, the RGG has evolved, covering engagement over disengagement in high-risk areas,
85%-90% of global gold production, and is vital for aligning with OECD Guidance. Allegations of inadequate
access to the Loco London market. Recognizing LBMA's due diligence lack credible evidence and are addressed
role in setting industry standards, particularly regarding promptly, reflecting both regulatory requirements and
human rights and illegal gold, is crucial for aligning EU market demand for assurance.
practices with global best practices. Failure to recognize LBMA underscores the importance of discerning
these standards would leave the EU industry without a media reports from factual evidence, employing a
framework, hindering progress. thorough Incident Review Process (IRP) overseen by
LBMA emphasizes the importance of engaging with the Compliance Panel. Only credible allegations warrant
civil society organizations (CSOs) for oversight and public announcement of an IRP, as unsubstantiated
improvement of the Responsible Sourcing Programme. claims risk damaging a Refiner's reputation unfairly.
Bilateral discussions and planned events like the CSO LBMA's cautious approach ensures fair treatment while
roundtable during the 2024 OECD Forum demonstrate upholding industry standards and customer trust.
LBMA's commitment to constructive exchanges and
continuous improvement. LBMA seeks to enhance Transparency
CSO involvement in the assurance process, aiming LBMA highlights its efforts to enhance transparency in
for effective collaboration and reflection of CSO the gold supply chain, particularly through updates in
perspectives in supplier reviews. the Responsible Gold Guidance (RGG) and Disclosure
Guidance. These revisions broaden reporting
Due Diligence requirements, emphasizing accuracy in country of origin
Regarding due diligence practices among Good Delivery data, disclosure of recycled material, identification
List (GDL) Refiners, LBMA emphasizes adherence to of high-risk suppliers, and enhanced due diligence
stringent standards. All GDL Refiners are obligated measures. While LBMA aggregates industry information
to continuously assess and mitigate risks, drawing on for contextual understanding, individual Refiners are
intelligence from credible sources and employing on- responsible for their own disclosures.
the-ground agents for due diligence support. LBMA's LBMA commits to ongoing improvements in
involvement in the Minerals Grievance Platform (MGP) transparency, considering feedback, governance, and

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