WEF and Industry Giants Launch Mining and Metals Blockchain Initiative To Increase Efficiency
Seven top metal and mining companies have announced a partnership with the World Economic Forum (WEF) to design and establish blockchain solutions for the industry.
In a report published by the Global Mining Review on October 25th, it was reported that the “Mining and Metals Blockchain Initiative” will explore blockchain to build better and responsible practices that will improve industry efficiency and bring transparency to carbon emission.
The leading members of the initiative are Tata Steel, Antofagasta Minerals, Eurasian Resources Group Sarl, Glencore, Klockner & Co, Minsur SA and Anglo American/De Beers (Tracr).
The move will see the corporations split the cost of research to develop standard solutions leading to greater trust and lesser fragmentation among them.
The members are expected to identify the issues related to company governance, develop case studies and create a working group. Blockchain technology will be explored to increase trust among upstream/downstream partners, bring in standardization, improve transparency in sustainability practices and track the movement and origin of raw materials.
Jörgen Sandström, Head of the Mining and Metals Industry, World Economic Forum said,
“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.”
The World Economic Forum comes in to offer its platform and expertise and help the companies better understand the potential of blockchain technology. It will provide guidance on governance issues related to the delivery of a neutral industry platform and the expansion of members.
It has been observed that same industry competitors are increasingly exploring consortium formation to accelerate and strengthen blockchain technology knowledge and potential research and development. This trend is reflected in the Deloitte Global Blockchain survey published in May, in which 92% of the respondents said that they either belonged to a consortium or planned to join one in a year.