SEATTLE (Scrap Monster): The London Bullion Market Association (LBMA) announced that it has suspended the accreditation of a gold refinery in Kyrgyztan. The decision is further to the refinery failing to meet its responsible sourcing standards. No further details were provided by the Association.
The statement issued by LBMA said that Kyrgyzaltyn OJSC has been suspended from the LBMA Good Delivery List with effect from 17th September, 2021, for failing to meet the Responsible Sourcing Programme. The production from the refinery will no longer be accepted as Good Delivery effective the above mentioned date, it added.
The suspension of the accreditation will restrict the refinery’s access to the mainstream market, as major banks tend to deal with refineries that happen to be in the LBMA’s “good delivery” list. Meantime, state-owned Kyrgyzaltyn denied the allegations, saying that it has not been associated with any wrongdoing.
The decision to suspend Kyrgyzaltyn from LBMA’s list of acceptable refiners over missing bars is said to be a big blow to Kyrgyztan’s bullion-dependent economy, as it will block the gold mined in the country from being sold in other gold hubs including Switzerland and New York.
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