The role of LBMA and RMI aligned intermediate refiners and aggregators in improving supply chain traceability and due diligence in Peru and Colombia.

There are several critical barriers to legitimate ASM production passing through legal supply chains, including an absence of legal domestic exporters, lack of volume in production or audit schemes that unintentionally include unattainable standards for ASM miners and traders. At the same time from mid stream perspective, many medium sized gold refiners that do not have direct off-take agreements with large scale mines, also face barriers to traceability and transparency in their supply chains since gold sourced from artisanal or small- scale mines often times passes through aggregators/crude gold refiners who melt the gold obscuring it origin and making due diligence efforts more difficult for the fine refiners.   

This session will explore the role intermediate/crude refiners and aggregators aligned to two leading audit schemes (LBMA and RMI) can play in improving sourcing practices, as well and supply chain traceability and due diligence, globally, with specific focus on Peru and Colombia case studies. In 2021, the RMI published Researching the Role of Aggregators and Crude Refiners in the Gold Supply Chain and based on the outcomes of the study moved to extend its assessment beyond the fine refiner pinch point. Colombia was the first country in which the RMI has piloted its approach to bring its OECD-aligned RMAP audit standard to aggregators/crude refiners.  Both Colombia and Peru examples serve as a template for LBMA’s ongoing efforts to create a framework by which GDL refiners can increase direct sourcing of ASM material. Representatives from Gold by Gold and PX Precinox will provide their insights into how they have developed their business model, the challenges they have faced, and how they intend to scale up their sourcing of ASM production and work to demonstrate supply chain traceability and due diligence.