The London Bullion Market Association (LBMA) is facing legal action over claims that its accreditation system contributed to the deaths of two miners in Tanzania. The case, which began in London’s High Court on Wednesday, involves families of the miners who died in separate incidents at the North Mara gold mine in 2019.
The plaintiffs allege that the LBMA’s responsible sourcing framework—central to its “good delivery list” certification for refiners—effectively obscured human rights abuses occurring at the mine. The LBMA’s certification is widely regarded as a prerequisite for delivering gold into London vaults, setting a global benchmark for standards in the gold market.
The two miners, artisanal prospectors working with waste rock and slurry, were reportedly killed during crackdowns by police and private security using tear gas and live ammunition. The North Mara mine is operated by Barrick Gold, a major global mining company, and the gold at issue was processed through an Indian refinery accredited by the LBMA.
In court, the families’ legal team argued that the LBMA’s certification scheme enabled the continuation of commercial activities linked to serious abuses by maintaining accreditation when decertification was warranted. They contended that the association’s responsible sourcing standards amounted to a “thick smokescreen” that prevented adequate scrutiny of the mine’s supply chain.
The LBMA has denied all liability, asserting it does not directly certify gold as responsible but rather requires refiners to have due diligence procedures in place. According to the defendant, it neither conducts audits nor has access to confidential documents held by refiners. The association’s lawyers also emphasized that the LBMA does not owe a legal duty of care in relation to the deaths.
This case holds potential implications beyond the gold market, as it challenges the legal responsibilities of industry bodies that establish voluntary certification schemes. The LBMA warned that recognizing liability for certification programs could expose numerous industry groups to legal claims over actions of unregulated entities, potentially undermining global responsible sourcing efforts across several commodities.
Market analysts suggest a ruling against the LBMA could have a profound effect on the mining sector. Advocacy groups stressed the case’s significance in demanding greater accountability and rigor from voluntary certification schemes to prevent harm in supply chains.
The LBMA, a nonprofit organization with a staff of 45, reported a pre-tax loss of £1.6 million last year and acknowledged it could face up to £3 million in legal costs if the claimants prevail. Despite the financial strain, the organization stated it intends to vigorously contest the claims.
The trial follows the LBMA’s recent annual meeting in Italy, where chief executive Ruth Crowell indicated that fee increases might be necessary to sustain and expand the association’s role in market oversight. The outcome of this case could reshape the accountability and operational frameworks of gold market governance worldwide.