Pressure groups, the London Mining Network (LMN) and the Global Legal Action Network (GLAN), have filed court papers in London’s High Court, seeking a judicial review against the London Metal Exchange (LME) for allowing the trade of what they deem to be ‘polluting’ Indonesian metal. The groups argue that the LME is breaching British anti-money laundering and proceeds of crime legislation. The LME, however, has responded by stating that the claim is misconceived and that it intends to resist it.
The LME, which is the world’s largest and oldest forum for trading metals, requires companies trading on its exchange to undergo sustainability audits. Furthermore, it is in the process of suspending or delisting 10% of its metals brands until their producers provide responsible sourcing information, including environmental management requirements. The LMN and GLAN maintain that the LME’s sustainability framework is inadequate and are pushing for a revision of the rules for metal listing on the exchange.
The court action alleges that mining waste from the Grasberg copper mine in West Papua, Indonesia – owned by Indonesia’s state mining company and Freeport McMoRan, the operator of the mine – is being dumped, causing pollution in the water sources relied upon by indigenous communities in West Papua. Freeport, however, claims that their tailings disposal in Indonesia is reliable and safe.
According to GLAN and the LMN, copper obtained from the Grasberg mine and traded on the LME constitutes criminal property as it is produced under circumstances that would violate British criminal law. Leanna Burnard, a lawyer with GLAN, emphasizes that the LME, being a recognized investment exchange, has specific legal obligations to identify and mitigate financial crime risks on its platform.
The LME is owned by Hong Kong Exchanges and Clearing.
