London Bullion case to proceed in High Court 

• On 20 January, the UK High Court of Justice ruled that a case against the London Bullion Market Association (LBMA) for wrongly certifying gold from a mine in Tanzania as free from serious human rights abuses will go to trial after 29 June 2026. The exact date has not been set.

About the case 

• In December 2022, law firm Leigh Day filed a complaint against the LBMA on behalf of the families of two artisanal miners for alleged human rights abuses at a gold mine in Tanzania. 
• The complaint alleges that in 2019, the two workers were violently assaulted and killed by security guards and Tanzanian police officers on behalf of the North Mara Gold Mine, which is majority-owned by the Canadian multinational Barrick Gold in Tanzania. Gold mined in the North Mara Gold Mine is refined by MMTC-PAMP India Pvt. Ltd (MMTC-PAMP), a Swiss-Indian refiner, which is accredited by the LBMA as a “Good Delivery” refiner, based on LBMA’s “Responsible Gold Guidance”. 
• The complaint alleges that LBMA owed the two miners a duty of care based on
  • LBMA continuing to certify MMTC-PAMP as a “Good Delivery” refiner despite numerous reports which documented human rights abuses at the mine, and not taking reasonable steps to respond to those allegations 
  • LBMA statements on its close supervision and control of due diligence in the areas of health, safety, and human rights standards for the sourcing of gold, relied on by direct and indirect purchasers of gold 
  • The extensive mandatory rules and policies concerning the minimum human rights standards in gold supply chains that LBMA established and oversees, including the “Good Delivery” rules.  
• The claimants also argue that by continuing to certify the gold as “Good Delivery”, LBMA was representing to global markets, consumers, investors, governments and trade bodies that no human rights abuses were associated with gold from the mine. According to the claim, LBMA certification “masked” serious human rights abuses and effectively allowed them to continue “unabated”. 

About LBMA 

• LBMA is an international trade association representing the global market for gold and silver bullion. It is headquartered in London and has a global client base, including most of the central banks that hold gold, private sector investors, mining companies, producers, refiners and fabricators. Without LBMA approval, refiners cannot legitimately access the London bullion market, and according to LBMA’s website, without membership of the LBMA, a refiner does not have “a seat at the table” of the global gold market.  
• LBMA publishes “Good Delivery” Lists, which are lists of refiners accredited by LBMA to supply gold and silver. Requirements for being included on the LBMA Good Delivery Lists include implementing LBMA’s Responsible Sourcing Programme and passing an independent audit.  

Implications 

• This appears to be the first case against a certification body for its role in human rights violations. This could have significant implications for certifiers in other fields.  
• Under the EU’s Corporate Sustainability Due Diligence Directive, companies can use multistakeholder initiatives, including certification bodies to help meet their obligations, but they are required to first assess the effectiveness of the initiatives. Similarly, the German Federal Office of Economics and Export Control (BAFA) published guidance on standards, audits and certifications for companies under the German Supply Chain Due Diligence Act on 12 December 2024 stating that companies relying on standards and certifications as part of their due diligence still hold legal responsibility for meeting due diligence requirements under the Act. Companies must routinely assess the adequacy of these standards and can be held accountable for any failure to evaluate them properly. If this case against LBMA is successful, it will add additional expectations on certifiers.