In a continent known for its issues with ethically sourced minerals, the Rwandan government has started the world’s first blockchain initiative to track tantalum from the ground to refinery. This is part of a drive to encourage investor funds into supporting conflict-free mineral sources.
Tantalum is a mineral used in manufacturing mobile phones, among other uses. In recent times the government of the Democratic Republic of Congo has alleged that the mineral has been mixed with other smuggled minerals that are being used to fuel conflict in the DRC. As such, the initiative’s goal is to implement the use of blockchain technology to track tantalum from excavation to the refining stage.
Mining companies, which increasingly struggle to gain investor confidence as the pursuit of opportunities drives them into high-risk territory, are exploring the potential of blockchain to mitigate any dangers. Rwandan officials say it was vital for Rwanda to prove it was a conflict-free source of tantalum.
“Rwanda has demonstrated without a doubt that the minerals coming from Rwanda are conflict-free and that’s not questionable whatsoever. But now what we are looking at is how to continue to demonstrate that with the solution that is cost effective and efficient, that is adopting also modern technologies that are consistent with how the rest of the world are doing this, said Francis Gatare, Chief Executive of Rwanda’s Mines, Petroleum and Gas Board.
Circulor, a British start-up specialised in blockchain, and Power Resources Group (PRG) have developed a system using GPS tracking and facial recognition to help prevent any corruption of the system. It also compares the amount of each batch of material put into a refinery from sealed bags with the end product.
“…security tags are put on bags of material, and those security tags are created by the company themselves, it’s free. But the security tag is created only for particular point in the life cycle, so in this case these tags have been created for this particular mine site and can only be used here. So the only point where they can be added to the block chain is here at the mine site where they they were intended for,” said Douglas Johnson Poengsen, CEO and founder of Circulor system. He intends for the blockchain platform to empower consumers’ understanding of where the materials in the products they buy come from and also make it harder for materials that are not ethically sourced to pass through the supply chain.
Despite the advantages the project promises, some critics of blockchain tech say, like any other monitoring system, it is only as good as the data entered into it.
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