CASE STUDIES

Enhancing compliance with LME Responsible Sourcing Requirements

Brands admitted to trading on the London Metal Exchange (“the LME”) are required to fully embed the LME Responsible Sourcing Requirements by 31 December 2023. In turn, concentrates producers who supply to LME-listed brands face more stringent responsible sourcing expectations.

Kumi was commissioned by a large Bolivian producer and exporter of zinc, lead and silver concentrates, whose sole off-taker is an LME-listed brand, to strengthen the company’s due diligence management system and meet its off-taker’s expectations in line with LME’s Responsible Sourcing Requirements.

Applying the five-step supply chain due diligence framework

The LME’s approach to responsible sourcing is based on the five-step supply chain due diligence framework foreseen in the OECD Minerals Guidance. Kumi applied its tested and proven Responsible Sourcing Diagnostic methodology to undertake a gap analysis of the Bolivian producer’s existing responsible sourcing management system against the OECD Minerals Guidance. Kumi combined a comprehensive document review process with in-depth interviews with key personnel and followed the structure and risk-based approach of the OECD Minerals Guidance.

Considering the specific Bolivian context

For the successful realisation of this project, it was essential to consider local realities and sourcing practices. The project was therefore led by Kumi’s South American team. A highly specialised, experienced and Spanish-speaking delivery team was put together to consider the supply chain risks and mining practices of mining cooperatives that characterise the Bolivian mining landscape.

Become a leader for responsibly sourced minerals

Kumi provided the Bolivian producer with a comprehensive gap analysis report including actionable recommendations and a timeline to close gaps and improve the existing responsible sourcing management system.

After the successful completion of the project, Kumi’s client was presented with a clear roadmap and tools to:

future-proof its approach to responsible sourcing and enhance responsible sourcing compliance
meet its off-taker’s supply chain due diligence expectations in line with LME’s Responsible Sourcing Requirements
become a leader for responsibly sourced minerals in Bolivia.