LONDON METAL EXCHANGE (LME) ANNOUNCES ITS RESPONSIBLE SOURCING REQUIREMENTS

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.

http://www.mondovisione.com/media-and-resources/news/lme-sets-out-responsible-sourcing-requirements/

https://www.lme.com/en-GB/About/Responsibility/Responsible-sourcing

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s