Blockchain Certified Digital Payments for Miners
THE QUESTION
Can blockchain technology formalise mineral sourcing in the artisanal mining sector and reduce the likelihood of conflict minerals entering supply chains?
LOCATION: Democratic Republic of Congo
SECTOR: Extractive Industries
TECH: Blockchain
TIMELINE: June 2020 - December 2021
PIONEERS: Lindsey Allwright, Sally Faulkner
PARTNER: Minexx
The Challenge
Conflict minerals are minerals which are mined in conditions of armed conflict and human rights abuses and are sold or traded by armed groups. These minerals have wide social implications as they are extracted from fragile and conflict-affected countries. While there has been considerable effort by several groups to prevent conflict minerals from entering supply chains, this effort is ineffective due to poor law enforcement and the premise that the issue lies at the beginning of the chain: when miners extract the ore and exchange it for income.
The Idea
This pilot will provide a blockchain-certified digital payments platform to facilitate fair pay to miners in the informal sector with the aim of reducing the likelihood of conflict minerals entering international supply chains. By having blockchain as the base of the payment platform, this pilot aims to increase transparency and trust in the mineral sourcing supply chain by ensuring that information on the miner’s output is authentic and secure, while improving transactional transparency across the supply chain. This pilot seeks to address the issue at the beginning of the supply chain by allowing miners to confirm the exchange of ore for income via mobile payment, ensuring a fair and safe transaction as the income is deposited electronically
This pilot is ongoing and key learnings are forthcoming. Stay tuned!
All photos on this page were taken by the pilot’s implementing partner, Minexx. Read more
Read an introduction to the artisnal gold market — 'An introduction to the artisanal gold market'
Explore key learnings from the pilot’s Sprint 3, Sprint 4, and final Sprint 5
Learn more about Minexx, the pilot’s partner — Minexx Website
Explore the step-by-step journey and learnings of the pilot - Pilot Story