Seven major mining and metals firms together with the World Economic Forum (WEF) are joining hands to create responsible sourcing and sustainability practices using blockchain technology. On October 25, the Global Mining Review reported details about this the new “Mining and Metals Blockchain Initiative.”
Enhancing Transparency, sustainability, and efficiency
These firms and WEF want to pool resources to experiment with, design, develop, and deploy joint proofs-of-concept as part of a comprehensive blockchain platform. Instead of acting alone, the new initiative wants to foster the industry-wide trust that will be achieved through cooperation.
Through the joint venture, they will tackle insufficient standardization and avert fragmentation in the sector. A blockchain initiative that extends throughout the industry can assist the industry to increase transparency and even efficiency. Therefore, it will eventually improve the reporting of carbon emissions which will save the environment in the long term.
The members will examine various issues that are related to governance. They will also develop case studies and establish a working group. The main areas of collaboration and development will include supply chain transparency and carbon emissions tracking. The involved projects will strive to tackle provenance tracking, chain of custody and production methods.
The Head of the Mining and Metals Industry at the World Economic Forum, Jörgen Sandström, offered a statement outlining the new partnership. The statement read:
“Material value chains are undergoing profound change and disruption. 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.”
This initiative’s members include the World Economic Forum, Tracr, which represents AngloAmerican and De Beers, Antofagasta Minerals, Tata Steel Ltd., the Eurasian Resources Group, Klöckner & Co., and Glencore International AG.
International regulators and non-governmental organizations are also expected to offer some input for these firms’ collaborative development of blockchain solutions for the metal industry.
WEF’s Blockchain Policy Guidance
The World Economic Forum published a Blockchain Value Framework guide this summer. The guide is designed to advise various global businesses to invest time in understanding what blockchain technology is all about. The businesses should also strive to identify incentives and account for any potential risks. At the same time they will align their implementation with their strategic priorities.
At the end of May 2019, the WEF announced that it had formed six separate “Fourth Industrial Revolution” councils. These councils work on new technology policy guidance. Ahead of industry-wide venture that takes place on October 25, the bilateral blockchain projects in the mining and metals sector have also included Russia’s Alrosa, the world’s biggest diamond mining firm and a Tracr pilot for De Beers.