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New Social And Environmental Programme To Support Gold Mining Communities, The Integrity Of The Metal Produced

The London Bullion Market Association’s (LBMA) has a new social and environmental programme to support gold mining communities and the integrity of the metal produced.

The process of mining and refining precious metals has an inevitable impact on both the environment and on energy and water supplies.   Formally controlled, however, this impact need not be severe.

Current moves by LBMA have been designed to limit negative issues arising from gold production, to ease pressure on energy and water supplies, reduce pollution and support local infrastructure.

Working with precious metals refineries, which account for some 90% of world gold production, LBMA has, from the beginning of 2019, instituted a series of measures which require its members to certify that all gold refined (and traded) is sourced from mines and miners who conform to a programme of conduct which requires:

  • annual reductions in water and power consumption
  • support for communities via medical and other facilities, and transport infrastructure
  • environmentally sustainable plans regarding future mine closures.

“The implementation of this code of conduct is a major development for the precious metals industry and responds to the increasing importance of environmental issues within all extractive industries,” said Ruth Crowell, CEO, LBMA.

“We have extended LBMA’s Responsible Sourcing Programme to include key ESG elements which now run in tandem with our long-established work to ensure that all gold and silver trading settled through London, the world’s leading centre, conforms to rigid standards which outlaw conflict metals, child labour, money laundering and related issues.”

Continuous improvement is a key underlying principle of LBMA’s responsible sourcing programme and supports the UN Sustainable Development Goals, including good health and well-being, industry innovation and infrastructure and responsible consumption and production.  LBMA strongly believes that everyone involved along the supply chain in the global precious metals industry should be making changes that contribute towards achieving these goals and ensuring the industry acts responsibly.

LBMA is a membership organisation primarily composed of refineries, banks and precious metals traders in more than 30 countries.  Average daily gold trading by LBMA members is in the range of some $25-$35bn.

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