LBMA, the global authority for precious metals, has proposed a series of concrete steps designed to encourage the inclusion of gold produced by Artisanal and Small-scale Mining (ASM) into mainstream supply lines. It noted that its ambition is shared by a wide range of miners, refiners, governments, NGOs and other stakeholders.
Some 40 million people globally are engaged in ASM gold mining, producing as much as 20% of annual mined gold. LBMA has long supported the legitimisation of ASM production but has come to recognise that responsible sourcing programmes have unintentionally marginalised the sector due in part to rigorous sourcing standards, lack of engagement, and/or refiners’ and buyers’ concerns about reputational risk, LBMA stated.
The proposed steps should advance not only the governance of the sector but also open direct market access for those who depend either wholly or in part on artisanally-produced gold for their livelihood. LBMA also intends to work with the World Gold Council (WGC) and its members to find ways mining companies can better support ASM miners and suppliers by providing logistical and initial smelting services.
The announcement follows the publication of an external report by Gregory Mthembu-Salter and Dr Thomas Salter of Phuzumoya Consulting, ‘Towards an LBMA Good Delivery List for Artisanal and Small-scale Responsibly Mined Gold’.