Bloomberg News

Gold Organizations to Recognize Each Other’s Conflict Audits

September 17, 2012

The London Bullion Market Association and organizations from the jewelry and other manufacturing industries will recognize each other’s audit programs to halt the use of so-called conflict gold.

The LBMA, Responsible Jewellery Council and the Conflict Free Smelter Program use third party audits of gold refiners to help companies use conflict-free metal. The cross-recognition will mean more efficient audits for refiners and the bullion industry, the organizations said in a statement e-mailed today.

U.S. Securities and Exchange Commission commissioners voted 3-2 on Aug. 22 to adopt a so-called conflict minerals rule requiring companies to make reasonable efforts to trace sources of tin, tantalum, tungsten and gold in their products and a deeper search if the metals may have come from mines that have helped fund armed groups in the Democratic Republic of Congo.

About 4 metric tons of conflict gold is mined each year in the DRC, according to the LBMA, which cited United Nations estimates. Global production will be 2,652 tons this year, Barclays Plc estimates. The 63 LBMA good delivery gold refiners account for about 85 to 90 percent of global bullion production.

The Conflict Free Smelter Program was developed by the Global e-Sustainability Initiative and the Electronic Industry Citizenship Coalition.

To contact the reporter for this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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