On 25th October, an article on Mondo Visione reported that the LME has announced its responsible sourcing requirements following a formal market-wide consultation on proposals underpinned by the OECD Due Diligence Guidance. The LME requirements, which will apply to all its listed brands, rest on 4 core principles:
- the combination of transparency and standards;
- non-discrimination between large-scale mining (LSM) and artisanal / small-scale mining (ASM);
- adherence to well-established work in the sector; and
- a pragmatic and clear process.
While still using the OECD 5-step framework for risk-based due diligence in the mineral supply chain, the LME will now provide 3 “tracks” to achieve compliance:
- producers (whether or not they exhibit red flags) who wish to follow an industry scheme may adopt an internal or external OECD-aligned standard (“track A”);
- producers that raise no red flags in their initial assessment may complete a LME RFA standard-form template – which can then either be externally audited (“track B”); or
- reviewed and then published by the LME (“track C”).
The LME has provided reasonable timelines for compliance, with full engagement required by 2022 and full compliance by 2023.
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