The Problem of Conflict Minerals
Minerals such as coltan, tungsten, tin, and gold (known as 3TG) often finance armed conflicts and are extracted under exploitative labor conditions. Regulations like the Dodd-Frank Act in the U.S. and the EU Conflict Minerals Regulation require companies to verify the ethical origin of their materials. Blockchain technology offers the necessary transparency to meet these obligations.
How Does Mineral Traceability Work with Blockchain?
Blockchain allows tracking every stage of the mining supply chain:
- Extraction: Source mine, country, labor conditions, audits
- Smelting: Certified smelter, processing, purity
- Manufacturing: Produced components, assemblers
- Final product: Electronics, jewelry, cars containing the mineral
Conflict-Free Origin Certification
The blockchain record allows:
- Demonstrating that minerals do not come from conflict zones
- Verifying audits of mines and smelters
- Certifying ethical labor conditions
- Documenting compliance with international regulations
Ethical Jewelry and Gold
For the jewelry industry, blockchain enables:
- Tracing every gram of gold from the mine to the jeweler
- Certifying conflict-free diamonds
- Demonstrating responsible mining practices
- Connecting consumers with the origin of their jewelry
How Proovik Can Help You
At Proovik, we offer blockchain certification solutions for the mining and jewelry industries. Our platform allows:
- Creating immutable digital certificates of ethical origin
- Recording audits and verifications transparently
- Generating QR code labels for consumer verification
- Complying with regulatory due diligence requirements
Contact Proovik to implement blockchain traceability in your mineral supply chain.
Regulatory Compliance
The blockchain record facilitates compliance with:
- Dodd-Frank Act Section 1502 (U.S.)
- EU Conflict Minerals Regulation
- OECD Due Diligence Guidance
- Responsible Minerals Initiative (RMI)
It is important to note that the blockchain record provides technical evidence that complements, but does not replace, audits and certifications from accredited bodies.
Conclusion
Blockchain transforms the mining industry by making the invisible visible: every gram of mineral can be traced back to its origin, ensuring that our electronic devices and jewelry do not finance conflicts or exploitation.
