ASM Taskforce Terms of Reference

Component One is to articulate the legislative and regulatory regimes GDL refiners require from ASM producer countries to enable them to source artisanally-mined gold. An initial draft of these requirements will be generated by the LBMA and its Refiners’ Committee. This draft will then come to the Task Force for consideration. Task Force members will be asked to consider and comment on the proposals, with a view to enabling the LBMA to generate a second draft, which can then go to the Refiners’ Committee for comment and, potentially, approval. Should the Refiners’ Committee make substantive changes, the draft will then go back to the Task Force for consideration and, once amended, will go back to the Refiners’ Committee for approval.

Component Two is for the LBMA to engage with the WGC and a selection of its members to articulate the necessary and desirable regulatory and legislative conditions to encourage ASM/LSM cooperation, including in the production of responsibly mined ASM gold. An initial draft of these requirements will be generated by the LBMA following these discussions. This draft will then come to the Task Force for consideration. Task Force members will be asked to consider and comment on the proposals, with a view to enabling the LBMA to generate a second draft which can go back to the WGC and its members for consideration. Should this result in substantive changes, the draft will then go back to the Task Force for consideration and approval.

Component Three is to articulate the actual legislative and regulatory regimes in theory and practice for a selection of ASM gold producer countries. These countries are, currently, Ghana, Senegal, Cote d’Ivoire, Colombia, Peru, Philippines and (at a later stage), Zimbabwe. Country reports will be compiled by Phuzumoya Consulting, largely based on the public record but with additional inputs from relevant Task Force members. Phuzumoya Consulting would like to be able to contact Task Force members directly for this.

When the reports are complete, they will be submitted to Task Force for consideration, and members will be invited to submit comment. The reports will subsequently be amended as necessary. The reports will then enable a decision by the LBMA about which of the selected countries either do, or have the potential to meet GDL refiner requirements for their responsible sourcing of ASM gold.

Component Four is the identification of intermediate refiners, processors, and aggregators in the selected producer countries which may be interested in developing systems that demonstrate their due diligence of their artisanal supply chains. Task Force members will be invited to identify these entities, and to facilitate their engagement with the LBMA.

Component Five is to define the criteria and requirements that will enable GDL refiners to source from these processors and intermediate refiners. These criteria should be consistent with the auditing criteria for the RMI’s RMAP. These criteria and requirements will first be developed by Phuzumoya Consulting and submitted to the Refiners’ Committee for comment. They will then be taken to the Task Force for consideration and debate. Amendments will then be incorporated by Phuzumoya Consulting and a subsequent draft submitted to the Refiners’ Committee for comment and approval.

Component Six is for the LBMA and Phuzumoya Consulting to engage with international institutions and organisations, the governments, statutory bodies, central banks and other stakeholders of the selected producer countries concerning its proposed reforms and amendments to their legislative and regulatory regimes with respect to ASM gold production and trade. Task Force members will be invited to facilitate this process.

Component Seven is for the LBMA to launch a “GDL” for intermediate refiners, processors and aggregators1 that meet the identified criteria to enable GDL refiners to source from them, and to encourage compliant entities to apply for membership. Task Force members will be invited to facilitate this process. The process of establishing this list is to take place with due regard for, and steps to mitigate possible negative intended consequences for ASM miners.

The core criteria for the success of this strategy will be a halt to the decline in Responsible ASM gold being refined by the GDL, and, in its stead, a sustainable and progressive increase in the volumes of responsibly mined ASM gold being refined by the GDL.