Resource World Magazine

50 www.resourceworld.com J U N E / J U L Y 2 0 1 8 MINING IMAGINE BEFORE purchasing an elec- tric vehicle being able to verify that all the materials used to make it were mined from environmentally and socially respon - sible mines. Imagine a company that could create a liquid marketplace and drive the value of their commodity through digital technology. Sound futuristic? Not at all. The future of mining could lie in block- chain technology. Blockchain allows for the creation and maintenance of a continu- ously growing list of records called blocks, secured from tampering or revision. Blockchain is already used with min- ing products such as diamonds, which are imprinted with tiny OR code that links to a digital token verifying their quality, eth- ical extraction and authenticity, creating a robust, transparent end-to-end view of the custody of goods. Cobalt Blockchain Inc. [COBC-TSXV], a Canadian mineral exploration company sourcing minerals from artisanal and small-scale mines in the DRC (Democratic Republic of Congo), has recognized the growing need for complete transparency in the movement of minerals and metals, especially where conflict-free certification is important. The company recently signed a joint venture agreement with DLT Labs Inc. to provide secure, traceable and transparent methods for tracking and certifying the provenance of metals and minerals, through the entire supply chain from source to end-user. The platform will be piloted beginning with Cobalt Blockchain's cobalt assets in the DRC and then offered commercially. "This initiative is a significant milestone in ensuring the supply and use of conflict- free minerals, and will have an enduring and positive impact on our industry," said Lance Hooper, President and Chief Operating Officer at COBC. "The combina - tion of COBC's mining and metals trading, conflict-free certification experience, and DLT's innovative and enterprise-grade blockchain capabilities, signal an ability to automate trust within the minerals and metals supply chain." Loudon Owen, Chairman and CEO of DLT, said, "Companies and consumers demand assurances that the minerals and metals in their products are conflict-free. We now have the technology and tools to protect workers and prevent abhorrent labour practices so there is no excuse to support bad actors." Vancouver-based gold miner Goldcorp Inc. [G-TSX; GG-NYSE] also recently dipped its toe into blockchain technol - ogy in an attempt to increase the utility of gold and ultimately the value. Goldcorp sent 3,000 ounces of gold, worth $4 mil- lion to the Royal Canadian Mint where it will be used to back a new digital trading currency. New York-based Tradewind Markets Inc. will operate the trading platform, named Vault Chain, which digitizes gold by using blockchain. This arrangement marks the first example of blockchain technology being used to record and manage physical precious metals in an institutional setting. Goldcorp will be able to sell gold directly to dealers and banks using the Tradewind platform, expand - ing access to a new market structure and a highly efficient, electronic pricing and liquidity venue. "We are excited to be an investor in Tradewind and participate in the launch of Vault Chain, a cutting-edge technol - ogy that integrates physical gold into a blockchain," said David Garofalo, Pr esident and CEO at Goldcorp. "We believe physical gold stored on a block- chain will increase the utility of the commodity and, ultimately, drive value in the price of gold." Through the agreement with the Canadian Mint, every trade on Vault Chain will be backed one-to-one by physical gold bullion. The trading platform is open to all gold miners and, if it takes off, could pro - vide new buyers beyond the banks who traditionally buy the gold bullion. "We believe Tradewind has the poten- tial to change the gold investment industry like the introduction of ETFs did over 10 years ago," said Garofalo. In a recent PwC Report, The Future of Mining, the authors suggest "Securing the provenance of raw materials and creating a liquid marketplace are only two examples of blockchain's impact on the industry and when combined with other innovations including logistics, trade, finance, the pos - sibilities only multiply." The PwC report concludes, "The min- ing industry should not only be paying attention to how the blockchain space is developing but actually considering how it might begin to take advantage and where to invest." On the east coast, Halifax-based Peer Ledger's blockchain Mimosa application can track the supply chain of precious metals "to ensure every milligram pur- chased by buyers has come from an ethical source and is not funding armed conflict…" n Blockchain Technology in Mining Automating trust within the minerals and metals supply chain. by Robert Simpson

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