Approving a location is the first step in the process for listing warehouses for LME delivery. Once a location is approved the LME will license warehouse companies to issue LME warrants and finally list the warehouses that may store the metal.
Approving new delivery locations
The LME approves warehouse locations with the objective of having widespread network throughout the world in most of the important areas of net consumption. Locations must have appropriate fiscal and regulatory systems, be served by a good transport network, have the facility to store goods without payment of duty and enjoy political and economic stability.
Becoming an approved warehouse company
Warehouse companies will be considered for listing in an existing or new location subject to completion of a contract application form supported by evidence of insurance, capital adequacy and other documents as detailed by the LME from time to time.
Becoming an approved warehouse
The LME will only accept applications for the listing of new warehouses from existing approved warehouse companies.
Inspection of warehouse premises will take place prior to any listing to ensure they adhere to the logistical nature of the location required by the LME. All such requirements will be outlined by the LME when sending the application form.