A London court fight over two deaths at a Tanzanian gold mine could leave the LBMA, the body that sets the rules for the $1 trillion-a-week London gold market, insolvent. The trial opens Wednesday, and insiders warn a loss could undermine the Good Delivery List that futures exchanges rely on.
The London Bullion Market Association, which sets the rules for a gold market that trades roughly $1 trillion a week, faces a London court battle that some insiders fear could threaten its survival. A heavy loss, people familiar with its thinking say, could leave the LBMA insolvent.
Trial centers on 2019 Tanzania mine deaths
The trial, due to begin Wednesday, centers on a claim by the families of two men killed at Tanzania's North Mara gold mine in 2019. Both were 23. Lawyers at Leigh Day argue the LBMA should have suspended, or threatened to suspend, an accredited refiner that kept sourcing gold from the mine after reports of alleged violence by police at the site.
The LBMA denies it owed any duty of care and says the claim has no merit. It argues that responsibility lies with those who carried out the violence, and that it neither certifies nor controls mines.
Thin finances raise insolvency risk
The LBMA maintains the Good Delivery List, the accreditation standard that refiners and futures exchanges such as CME Group rely on. Yet its finances are slim. It held about £1.4 million in reserves at the end of 2025 and could face roughly £3 million of the claimants' legal costs if it loses, before any damages. None of its large bank members is obliged to backstop it.
People familiar with the association's thinking said internal discussions have touched on a successor body to keep core market functions running, though no steps have been taken.
Price impact seen as limited, structural risk bigger
The immediate effect on gold prices is likely to be limited, but the case is a structural risk to how the bullion market operates. Good Delivery accreditation underpins the fungibility of London bars and the delivery specifications of futures exchanges, so disruption to the list, or a messy handover to a successor body, could add friction and cost to trading, refining and settlement.
Ruling could expose other standard-setters
Several insiders still expect the LBMA to prevail. However, a loss could invite similar claims against other standard-setters, potentially including the London Metal Exchange. Refiners could also face tougher supply-chain scrutiny if the ruling sets a broad precedent, a risk that could spread to other metals markets using similar sourcing systems. Traders gathering at the LBMA's annual conference are watching the trial's opening days closely.
Source: Mining.com
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