As demand for gold concerns about sourcing the precious metal responsibly have again been thrust into the spotlight.
According to report, Global witness said one of the world’s biggest gold refiners has worked with many supplier which was at risk of having bought conflict metal originating in Sudan, is one of the latest series of calls from advocacy groups urging the London Bullion Market Association to inspect the suppliers more closely.
Gold is one of the most four conflict minerals that U.S listed companies from Tiffany and Co. to Apple Inc. must trace and report on to the securities and exchange commission.
Suppliers are coming under pressure to show they’ve got processes and policies in place to make sure the metal hasn’t financed conflict or been linked to corruption or human rights abuses.
But the report on Thursday, base on the Global Witness alleges that Swiss refiner Valcambi SA get large amounts of gold from Dubai-based Kaloti Precious Metals Group, which was at risk of having purchased Sudanese conflict gold.
The LBMA and Valcambi declined to immediately comment on the Global Witness report. Kaloti said the allegations in the Global Witness report are not true.
“Kaloti is independently audited each year against the relevant standards and at no time has any conflict material, from any jurisdiction, including Sudan, been identified in any of its supply chains,” it said. “Furthermore, Kaloti has never sent any gold material sourced from Sudan to any Swiss refinery whatsoever.”
Valcambi also denied Global witness finding and said it conducts amplify due diligence, said by the advocacy group.
Valcambi pledge last month to adopt a new system to high transparency in its process for sourcing precious metals, based on the blockchain technology, the system will require the refiner’s potential gold suppliers to upload all due diligence information.
The LBMA also said last month it’s reviewing reported sourcing concerns at the Perth Mint over gold originating from Papua New Guinea.