Photo by: Bloomberg
Seven mining and metals companies have partnered with the World Economic Forum (WEF) to support the responsible sourcing of raw materials using blockchain technology.
The Mining and Metals Blockchain Initiative was founded by diversified miners Antofagasta Minerals, Eurasian Resources Group and Glencore; Tracr, on behalf of Anglo American and its subsidiary, De Beers; base metals miner Minsure; and steel companies Klöckner & Co and Tata Steel.
The initiative will explore the building of a blockchain platform to address transparency, the tracking and tracing of materials and the reporting of carbon emissions.
The Mining and Metals Blockchain Initiative will pool resources and costs, increase speed-to-market and improve industrywide trust that cannot be achieved by acting individually.
“It aims to be a neutral enabler for the industry, addressing the lack of standardisation and improving efficiency.
“The group will look to develop joint proof- of-concepts for an inclusive blockchain platform. Over time, this could help the industry collectively increase transparency and efficiency, or improve reporting of carbon emissions,” the WEF said in a release last week.
The forum further stated that blockchain projects that supported responsible sourcing had mainly been bilateral.
The result had been a fractured system that left behind parts of the ecosystem and lacked interoperability.
Members will examine issues related to governance, develop case studies and establish a working group.
Key areas of collaboration and development could include carbon emissions tracking and supply chain transparency. The companies will work together to use blockchain technology to increase trust between upstream and downstream partners, to address the lack of industry standardisation and to track provenance, chain of custody and production methods.
“The industry needs to respond to the increasing demands of minerals and materials while responding to increasing demands by consumers, shareholders and regulators for a higher degree of sustainability and traceability of the products,” said WEF mining and metals industry head Jörgen Sandström.