Exclusive: London Metal Exchange to delay ban on tainted metal until 2025 - sources

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Exclusive: London Metal Exchange to delay ban on tainted metal until 2025 - sources
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The London Metal Exchange (LME) will postpone plans to ban metal tainted by huma...

LONDON/BEIJING - The London Metal Exchange will postpone plans to ban metal tainted by human rights abuses until 2025, giving producers three more years to comply with guidelines and the exchange time to rethink its approach, industry sources said.

The initiative to ensure responsible sourcing followed an outcry about cobalt mined by children in Africa. A senior metal trader said the LME now had time to review its plan. “It’s being kicked into the long grass, it looks like they want to rethink some aspects,” he said. “The LME is a price setting forum, not a policeman.”Industry sources said some metal producers including Chile’s Codelco CODEL.UL, the world’s largest copper producer, and Antofagasta considered their own rules more rigorous in ensuring responsible sourcing than those drawn up by the OECD.

Codelco told Reuters in a statement it “is participating and analyzing in detail the process that the LME is carrying out and will adopt a decision regarding its implementation when there is greater clarity regarding its content.” “We hope this will encourage more companies to meet international standards and requirements,” he said, saying the policy “poses a great challenge” for Chinese firms.

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