Responsible Sourcing
LBMA's ASM Initiative
LBMA is supporting the creation of formalised, responsible pathways for Artisanal and Small-scale Mining to enter professional markets.
LBMA’s ASM Initiative was officially launched in 2022 with a clear mission: to examine the longstanding challenges associated with Artisanal and Small-scale Mining (ASM) while supporting the creation of formalised, responsible pathways for ASM gold to enter the LBMA Good Delivery supply chain. In the past, rigorous responsible sourcing standards and concerns over reputational risk inadvertently marginalised ASM miners from formal markets.
This initiative is about reversing the trend of disengagement by setting credible standards and supporting frameworks that allow ASM gold to meet LBMA’s requirements without compromising on ethical, environmental, or legal compliance. Afterall, the alternative carries the proven risk of pushing responsible miners into unsafe and exploitative conditions whilst driving production into illicit channels, undermining efforts to promote responsible sourcing.
At the time of launching the ASM Initiative, LBMA Good Delivery List (GDL) Refiners' ASM throughput was less than 1% of production. The independent feasibility study, commissioned by LBMA in 2022, examined the obstacles to ASM gold being refined by GDLs and proposed a number of recommendations to increase the amount of responsibly sourced ASM material entering GDL production. The LBMA Board responded to these recommendations. The ASM Task Force was born and, following desk-based research—later followed up by on-the-ground initiatives—a few countries were prioritised for engagement.
Country Engagement: Progress So Far
The Bangko Sentral ng Pilipinas (BSP), the country’s central bank, is the only central bank in the world from a country with vast gold deposits, a well-established ASM tradition, which is also a member of the GDL and responsibly sources domestically produced ASM gold. During late May and early June, the LBMA’s ASM Initiative trained the BSP in using the ASM Toolkit and explored the ways in which this could enable the bank to source more of the country’s ASM gold, while still maintaining strong responsible sourcing standards. The training identified multiple possibilities, which the BSP is currently assessing internally for feasibility.
One of the BSP’s responsible sourcing innovations is to licence as a buyer PJLI, a local company with an extensive network nationwide of 3,500 pawnshops. Previously, the BSP has had to rely solely on the purchasing of its five buying stations. The PJLI is able to offer a degree of financing for ASGM, developing customised finance packages to provide both short-term liquidity and longer-term pre-finance. This is a potential gamechanger—the lack of legal, accessible credit for ASGM is a major obstacle to the formalisation and responsible growth of the sector.
The LBMA ASM Initiative visited Peru in October 2024, engaging with a wide range of stakeholders, and has since then remained actively engaged. Both during the visit and after, there has been close cooperation with the Swiss Better Gold Association (SBGA) in Peru. The SBGA is helping its members to implement LBMA’s ASM Toolkit, and has also worked to extend its programme to processing plants. The LBMA ASM Initiative presented to a conference of processing plants during the visit, and visited several operations, some of which already supply the GDL. Following this, we are developing a standard for processing plants that incorporates the ASM Toolkit, and specific Peruvian risks. We have also conducted detailed research on the presence of ASM miners on LSM permits, identifying which LSM operators are currently sourcing from ASM, and which are not but might do so, with a view to engaging on the potential for responsible sourcing.
ASM is a hot topic politically in Peru, with the Ministry of Energy and Mines seeking to draft a new law on the subject, and threatening to allow artisanal miners’ mining permits—called REINFO—to expire at the end of the year. ASM miner federations, meanwhile, some of whom have close ties to members of the country’s Congress, wish the permits to be extended and the status quo preserved. It remains to be seen who shall prevail, but regardless of the outcome, we will continue to make the case for responsible ASGM sourcing.
Ghana is the sixth largest gold producer in the world, and the largest in Africa, with an estimated output of 151 metric tons in 2024, of which the country’s authorities reckoned 66 tons were mined by ASGM miners. Between 1-2 million people are thought to be active in the country’s ASGM sector. Historically, the Ghanaian government has had an adversarial relationship with the ASGM sector, but in 2018 the administration changed course, launching a new initiative intended to expand legal Small-Scale Mining (SSM) while continuing to combat illegal operators. The government’s pivot created a space for the LBMA ASM Initiative and several GDL Refiners to engage with the country’s ASGM sector, and much work has been expended since identifying and seeking to build relationships with legal, responsible ASM operations. Several such operations have been identified, and there has, encouragingly, been some sourcing of their output by the GDL, including on behalf of the country’s central bank, the Bank of Ghana (BoG), which is building its gold reserves in part with ASM gold.
The legislative environment for ASGM changed significantly this year with the passing of a new Act requiring the country’s newly established Gold Board to purchase all of the country’s ASGM output. We are now exploring with the Gold Board and government the implications and opportunities of this important change for responsible ASM sourcing and LBMA.
LBMA ASM Task Force Explained - Who's Involved, What They Do, and Why It Matters
What is the ASM Task Force?
Formed in 2022, the ASM Task Force is a multi-stakeholder group which includes refiners, NGOs, government representatives, technical experts, and industry bodies. Its purpose is to guide LBMA to develop a Strategic Plan to support and integrate ASM gold into Good Delivery List Refiner production.
Why has the industry come together to create this group?
It is estimated that ASM gold accounts for up to 20% of global production and up to 20 million livelihoods rely on ASGM. Relying on exclusion carries risks of marginalising miners and driving trade into illicit channels. The Task Force was created to help develop responsible pathways for engagement, while upholding credible responsible sourcing standards.
How do the members work together?
The Task Force meets regularly to review sourcing frameworks, share insights on country-level engagement, and refine LBMA’s ASM Toolkit. They bring diverse perspectives—from field-level insights to assurance expertise—and their collective input helps shape LBMA policy, including updates to the Responsible Gold Guidance (RGG), ensuring ASM considerations are embedded in evolving due diligence standards.
LBMA ASM Toolkit
One of the Task Force’s first outputs was the ASM Toolkit - a practical framework that helps Refiners evaluate and engage with ASM supply chains responsibly. The toolkit sets baseline requirements (aligned with OECD guidance) and introduces a progressive improvement model, recognising that change takes time but must be measurable. The Toolkit does not certify ASM gold. Instead, it equips refiners with tools to assess risks and support continuous improvement where possible.
Refiners must review and apply the ASM Toolkit in their due diligence process.
LBMA is always open to feedback on this ASM Toolkit. Please reach out to [email protected] for more information.