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Representative image · Photo: swissinfo.ch
Representative image · Photo: swissinfo.ch

London Gold Certification Body Faces High Court Test Over Tanzanian Mine Deaths

The LBMA heads to London's High Court on October 7 to defend a negligence claim over the alleged 2019 killings of two Tanzanian artisanal miners at the North Mara gold mine.

The London Bullion Market Association will appear in London's High Court from October 7 to contest a negligence claim brought over the alleged killings of two Tanzanian artisanal miners at the North Mara gold mine in 2019.

The case, filed by law firm Leigh Day on behalf of the miners' relatives, challenges the 276-year-old Good Delivery system that governs which gold bars may be traded in London, the world's largest over-the-counter bullion market. It asks whether the association can be held responsible for abuses allegedly linked to gold mining.

Leigh Day claims the LBMA was negligent in re-certifying a Good Delivery refinery that processed North Mara's gold in 2019, saying the certification masked serious human rights abuses at the mine. The firm alleges the two people were killed by Tanzanian police, private security guards, or both. It says the families face extreme difficulty pursuing the allegations in Tanzania.

Barrick Mining, the Canadian company that owns North Mara, declined to comment. Representatives of Tanzania's government and police did not respond to requests for comment.

The LBMA, an independent body established by the Bank of England 39 years ago, manages the Good Delivery List of accredited refiners. In its defence documents, the association warned that a finding it owed a duty of care of the alleged nature and scope would be "an existential issue" for the organisation.

It argues that a successful claim could expose it to negligence suits from anyone allegedly harmed by gold mining worldwide, even though it does not certify mines. Chief executive Ruth Crowell said at a briefing that the claim misconstrues the LBMA's role in the supply chain and that the association denies owing the duty of care alleged. "We are defending the claim so that the court can determine the issues and LBMA's role," she said.

The stakes extend beyond the association. Only bars produced by refiners on the Good Delivery List are acceptable for settlement in Loco London trades, making the list central to the wider London gold market.

The system dates to 1750, when the Bank of England set up the list as London became a hub for gold flowing from Brazil and later from gold rushes in California, Australia and South Africa. After US conflict minerals legislation in 2010, the LBMA broadened its requirements beyond bar standards to include the Responsible Gold Guidance, a framework built on due-diligence principles and OECD guidance. Refiners must obtain an annual independent audit of their responsible sourcing controls.

Leigh Day said the case holds the LBMA to account for the gap between what its Responsible Gold Certificate represented and what it actually did to ensure effective due diligence and risk mitigation at high-risk mines.