Top accreditor of gold refiners and families of artisanal miners in London court case

By Polina Devitt

LONDON, Sept 28 (Reuters) - The London Bullion Market Association will head to London's High Court on October 7 to defend itself against a claim that it owed a duty of care to victims of alleged human rights abuses at Tanzania's North Mara gold mine.

The LBMA, the world's most influential accreditor of gold refineries, says any loss of life is a tragedy but rejects the claim, arguing it fundamentally misconstrues its role as an industry body that accredits refiners, not mines.

The claim was filed in 2022 by British law firm Leigh Day, representing the families of two Tanzanian nationals. The first phase of the trial is due to conclude on November 9, with closing submissions scheduled for November 19-20.

WHAT IS THE CLAIM ABOUT?

The claimants, granted anonymity, aim to prove to the court that two artisanal miners were killed by members of the Tanzanian police force, private security guards or both at North Mara in July and December 2019.

Reuters has been unable to independently verify these allegations. Representatives of Tanzania's government and police did not respond to requests for comment.

Barrick Mining ABX.TO, the world's third-largest gold producer, took operational control of North Mara in September 2019 after its acquisition of Acacia Mining. Barrick and the Tanzanian government own 84% and 16% of the mine, respectively.

Barrick declined to comment.

According to the company's 2024 sustainability report, North Mara has faced repeated trespassing by armed groups seeking to steal gold-bearing material over the years.

The mine's unarmed private security provider could request assistance from the Tanzanian police in the event of a threat to life, but neither Barrick nor the mine operator control or supervise the police, the report said.

In 2024, Barrick said an investigation by Tanzania's Commission on Human Rights and Good Governance had found no human rights violations related to security at the mine.

WHAT IS THE CONNECTION TO THE LBMA?

The LBMA maintains the Good Delivery List, the global standard for wholesale gold and silver bars. Only GDL bars are eligible for settlement in the London over-the-counter bullion market, the world's largest.

The GDL prohibits refineries from handling gold from sources contributing to human rights abuses, conflict or crime.

The claimants allege the LBMA was negligent in continuing to accredit India-based refiner MMTC-PAMP, which refined gold from North Mara in 2019, despite alleged human rights abuses linked to the mine.

They claim that suspending or threatening to suspend MMTC-PAMP's accreditation could have created pressure on the refinery, Acacia and later Barrick to stop the Tanzanian police from committing the human rights abuses they allege.

WHAT DOES THE LBMA SAY?

The LBMA says it acted appropriately and in line with its rules and OECD guidance. It says it relied on MMTC-PAMP's compliance reporting and independent audits of that compliance.

MMTC-PAMP, a joint venture between Switzerland-based MKS PAMP and state-owned Indian trading company MMTC Ltd, is India's only LBMA-accredited refiner.

MMTC-PAMP told Reuters that it rigorously follows the LBMA's Responsible Gold and Silver Guidance, and its compliance is confirmed annually by an independent third-party audit. It no longer sources gold from North Mara.