Tag Archives: EU Conflict Mineral Regulation

Minespider to provide responsible mineral tracking for LuNa Smelter

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Minespider, a blockchain protocol for responsible mineral tracking, and LuNa Smelter, a responsible tin producer in Kigali, Rwanda, have partnered to implement Minespider’s OreSource tool, starting this month.

OreSource, which is being developed under the grant awarded to Minespider by EIT Raw Materials earlier this year, is a blockchain-based due diligence tool for mines and smelters, helping them to capture key information that European Union importers require to comply with the new EU Conflict Mineral Regulation, coming into force in January 2021.

Smelters upload the data required into a digital blockchain certificate and, by affixing a QR code to a mineral shipment, or to an invoice, the recipients of the materials receive all the data they need to ensure their compliance with the EU regulation, secured on Minespider’s public blockchain protocol.

LuNa is the first Responsible Minerals Assurance Process conformant tin smelter in Africa, producing high-quality tin ingots and other minerals recovered from the refining process, such as tantalum concentrate, Minespider says. The ore is partially procured from LuNa’s own operational sites, as well as third parties who are compliant with LuNa’s strict internal environmental and social standards.

LuNa Smelter will pilot OreSource in Rwanda, together with the support and guidance of the Responsible Minerals Initiative and Rwandan Mines, Petroleum, and Gas Board (RMB).

“The industry is still unsure about how to comply with the EU Conflict Minerals Regulation,” Olena Wiaderna, Director of Sustainability and Supply Chain Due Diligence at LuNa Smelter, said. “OreSource will give us a tool to provide the information that is required, and help European importers collect the required data.”

RMB sees the project as an important step in redesigning the mining industry and transforming mining resources into key drivers of the country’s growth, according to Minespider.

“The board has already deployed different due diligence measures, including the development of tag managers at mining sites to seal and track the minerals extracted,” Minespider added. “This maintains the transparency of the supply chains and reduces the risk of potential illegal trade in minerals.”

RMB believes that this digital identification of minerals may offer upstream companies more direct compensation in exchange for demonstrating responsible mining practices, while optimising the actual cost.

Francis Gatare, the CEO of RMB, said: “This comes as a confirmation to what we have always known: Rwanda is a conflict-free source of minerals, and, by LuNa Smelter pioneering blockchain in minerals tracking in Rwanda, we’re taking another big step forward for the Rwandan mining sector.”

Google will provide input and offer industry expertise to ensure OreSource is aligned with importer and manufacturer requirements, Minespider said.

The pair have previously implemented a traceability project, tracking tin from the mine to the end user, along with other consortium members such as Volkswagen, and the Peruvian mining company Minsur.

“The cooperation with LuNa Smelter and Minespider will further Google’s engagement in responsible sourcing practices for 3TGs in the Great Lakes region,” Minespider said.

Nathan Williams, Minespider’s CEO, explained: “Historically, companies like LuNa Smelter, who pioneer responsible sourcing in exceptionally challenging environments, have been at a disadvantage. Their due diligence incurs costs that are not reflected in the world market’s metal prices. OreSource gives such companies the opportunity to stand out, and to provide their customers due diligence information as an additional service.”

Minespider wins EIT Raw Materials funding for supply chain transparency app

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Minespider, a blockchain protocol for responsible mineral tracking, has been awarded a grant of over €180,000 ($213,732) from the EIT Raw Materials Booster Programme.

The program aims to support start-ups and SMEs in creating innovative products and services that will positively impact the raw materials sector, according to Minespider.

The grant will help Minespider develop OreSource, a due diligence product that helps mines and smelters capture key information that importers in the European Union need to comply with EU Conflict Mineral Regulation. The regulation, which comes into force in January 2021, requires EU importers of 3TG (tin, tungsten, tantalum and gold) to perform due diligence to determine whether their material comes from a conflict affected or high-risk area.

Minespider Founder and CEO, Nathan Williams, said: “European importers need to have better access to data to operate in this new regulatory environment. They require certain data to be included with the materials they purchase.”

The OreSource product extends the capabilities of Minespider’s open, public blockchain protocol, which allows companies to track their raw material shipments, demonstrating where the materials come from and the conditions under which they were produced, the company says. This blockchain creates digital certificates that separate data into three different layers, depending on whether the data should be publicly visible, transparent between members of the same supply chain, or private between a company and their customer.

“This allows their clients, including Volkswagen and Google, to share sensitive transparency information with their customers and other supply chain participants securely,” Minespider says.

The OreSource app allows mines and smelters to provide information to distinguish their products from the rest of the market. Mines and smelters who use the app upload key data such as bills of lading, invoices, company policies, and third-party certifications, which are assembled into a digital certificate and linked along the supply chain.

By affixing a QR code to a mineral shipment, or on an invoice, the recipients of the materials have all the data they need to ensure their compliance with the EU regulation, secured on Minespider’s public blockchain protocol, the company claims.

Williams continued: “Responsible producers are often at a disadvantage in the global market. OreSource is a solid first step toward making responsibly sourced material the norm instead of the exception.”

Companies importing material into Europe benefit from this information, as they have all they need to conduct due diligence. “This means they can view transport routes, analyse production site responsibility, and demonstrate a chain of custody for their raw materials,” Minespider says.

OreSource will also offer analytical tools that allow material importers to identify potential conflict areas and other red flags, the company says, enabling them to ask further questions when needed and ensure all of their imports have been sourced responsibly.

Williams concluded: “The EU and other government agencies are spearheading a new global era of sustainable sourcing. OreSource will support these efforts by ensuring that key data from mineral producers is captured in a transparent manner, and communicated along the supply chain. We are moving away from a world of anonymous commodities, to one of trusted products.”