The London Bullion Market Association (LBMA), the industry body that sets the rules for the world’s largest gold market, faces a legal battle in a London court that some insiders fear could threaten its survival, mining.com reported.

The trial, due to begin on Wednesday, centres on a claim brought by the families of two men who were killed at Tanzania’s North Mara gold mine in 2019. Both men were 23. North Mara ranks among Tanzania’s largest gold mines. Lawyers at Leigh Day, a London law firm known for human-rights claims against multinational companies, argue that the LBMA should have acted more forcefully after reports of alleged violence by police at the site. They say the association should have suspended, or threatened to suspend, an accredited refiner that continued sourcing and processing gold from the mine.

The LBMA says the claim has no merit and denies that it owed the alleged duty of care. It argues that responsibility rests with those who carried out the violence and says it neither certifies nor controls mines.

The case presents a significant structural risk to the way the bullion market operates, even though its immediate impact on gold prices is likely to be limited. The LBMA, a trade association founded in 1987, oversees a London market that trades around $1 trillion of gold a week and maintains the Good Delivery List, the accreditation standard for refiners on which market participants and futures exchanges such as CME Group rely.

Good Delivery accreditation underpins the fungibility of London bars and the delivery specifications used by futures exchanges. Any disruption to the list, or a disorderly handover to a successor organization, could increase friction and costs in trading, refining and settlement. If the ruling establishes a broad precedent, refiners could also face more extensive supply-chain scrutiny. Similar risks could extend to other metals markets that use comparable sourcing systems.

The LBMA’s finances are limited. It held about £1.4 million in reserves at the end of 2025 and could face roughly £3 million in the claimants’ legal costs if it loses, before any damages are awarded. None of its large bank members is obliged to provide financial backing.

People familiar with the association’s thinking said a significant adverse ruling could leave the LBMA insolvent. They said internal discussions had taken place about creating a successor body to preserve core market functions, although no steps have been taken. The same people warned that a broad duty of care could make the Good Delivery system unworkable and force the LBMA to stop enforcing responsible-sourcing standards.

Several insiders still expect the LBMA to prevail. A loss, however, could encourage similar claims against other standard-setters, potentially including the London Metal Exchange. It could also unsettle the infrastructure of one of the world’s most important commodity markets.

Traders attending the LBMA’s annual conference are expected to watch the opening days of the trial closely.

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Source: mining.com report.