LBMA Launches Responsible Silver Guidance Version 2
On 2nd November 2023 the LBMA announced the publication of Version 2 of the Responsible Silver Guidance (RSG v.2), the document that, along with the Responsible Gold Guidance (RGG), underpins the LBMA’s Responsible Sourcing Programme.
The changes to the RSG v.2 align it with the RGG v.9, whilst also addressing the differences between the two markets. The key changes are:
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 have 12 months to meet this new guidance, which will be applicable from Monday, 1 January 2024.
Download the full Responsible Silver Guidance Version 2 here.