Companies have the legal and moral obligation to source their minerals responsibly, ensuring that their minerals are not funding civil war, slavery, or child labour. In practice, tracking this is very difficult to do. Conflict minerals are often sold to intermediaries in order to launder them into the supply chain.
The Minespider approach uses blockchain to track responsible minerals. Responsible mines are given electronic certification tokens according to the amount of material they produce. These tokens travel up the supply chain along with shipments, acting as an audit trail for companies purchasing these documented minerals. Because we are tracking the production volumes of certified mines instead of the shipments themselves, effectively our system proves that money flows to certified mineral sources.
Our system dos not require hardware tags or transponders. Instead it is the production tonnage of responsible mines that is tracked by the Minespider tokens.
To imagine how this works, imagine purchasing renewable energy. Electricity would still come to your house from the grid, probably mixed with coal power, however you would know your money went to the renewable energy company, putting a financial barrier to non-renewables that increases as more people make the change.
By using this token system, we can ensure that when your company purchases minerals, you will be able to demonstrate that your money goes to responsible mines, pushing undocumented minerals out of the system.
Would you like to find out more? Sign up and we will be in touch.
Nathan Williams, MBA
Nathan is the founder of Subvise, a Chemical Reg-Tech startup in Berlin, and Hinwise, a software consultancy for corporate and industrial clients.