November 02, 2023

LBMA Launches Responsible Silver Guidance Version 2

LBMA is pleased to announce the publication of Version 2 of the Responsible Silver Guidance (RSG v.2), the document that, along with the Responsible Gold Guidance (RGG), underpins LBMA’s Responsible Sourcing Programme.

The Guidance has been enhanced following public consultation and incorporates the feedback received. A Refiners’ Working Group was also set up to review this feedback and discuss the issues raised.

Sakhila Mirza, LBMA Executive Board Director and General Counsel

“LBMA’s role is to advocate for the continuous improvement of global Responsible Sourcing standards. Alignment of the RSG with the RGG, the cornerstone of the Responsible Sourcing Programme, demonstrates our commitment to this goal. We would like to thank all interested parties for their valuable contribution to the consultation process.” - Sakhila Mirza, Executive Board Director, LBMA.

The changes to the RSG v.2 align it with the RGG v.9, whilst also addressing the differences between the two markets.

What are the key changes?

  • Removal of the de minimis threshold;
  • Clarity on due diligence expectations regarding the responsible sourcing of recycled silver;
  • The elimination of cash transactions except for Artisanal and Small-scale Mining (ASM), where transactions will require approvals (see the full RSG for other exceptions);
  • Clarity on origin of material, such as an integrated approach to risk assessment and strengthen due diligence processes;
  • Further detail on ESG risk assessments;
  • Risk mitigation requirements clarified and aligned with OECD Due Diligence Guidance;
  • Rotation of auditors every 10 years and annual assurance checks to promote auditor independence and audit quality;
  • Mandatory conformance with Disclosure Guidance to promote better reporting practices;
  • The inclusion of ‘base metal concentrates’ in the definition of ‘Mined Silver’;
  • The revision of the definition of ‘Silver Concentrate’ to ‘Silver-Bearing Concentrate’, and the inclusion of ‘base metal ores’ within this definition.

Refiners will have 12 months to meet this new guidance, which will be applicable from Monday, 1 January 2024.