THE London Bullion Market Association (LBMA) has gone on trial over allegations that its gold certification programme helped enable abuses at Tanzania’s North Mara mine, Bloomberg reported.
Families of two men allegedly shot dead by police at the mine in 2019 argue that the LBMA’s responsible sourcing programme gave the operation legitimacy despite alleged human rights abuses.
Their lawyer, Dominic Grieve, told the London court that the programme had served as a “thick smokescreen”, providing “plausible deniability” that allowed abuses to continue unchecked.
The six-week trial could have far-reaching implications for the LBMA, which plays a central role in overseeing London’s gold market and certifying refiners under its Responsible Gold Guidance.
Law firm Leigh Day, which is bringing the claim, said another 30 people had joined the lawsuit pending the outcome of the case.
The LBMA denies the claims and argues it cannot be held responsible for deaths resulting from allegedly unlawful actions by police.
Its lawyers warned that a finding that the association owed a duty of care to the two men could expose it to legal and financial liabilities it would be unable to withstand, potentially threatening both the LBMA and its responsible sourcing scheme.