The World Economic Forum’s (WEFs) Mining and Metals Blockchain Initiative (MMBI) announced in December that it had released a proof of concept that uses distributed ledger technology to track embedded greenhouse-gas emissions with a focus on end-to-end traceability.

The initiative, a collaboration between seven major industry participants and the WEF, has hit an important stage of development following its launch in October 2019.

In many cases, blockchain projects to sup WEF port responsible sourcing have been bilateral. The result has been a fractured system that does not fully consider parts of the ecosystem and which lacks interoperability. The MMBI, by contrast, is owned and driven by the industry, for the industry. Members examine issues related to governance, develop case studies and have established a working group.

The WEF offered its platform and expertise to help industry leaders better understand the impact and potential of blockchain technology, providing guidance on governance issues related to the delivery of a neutral industry platform and the expansion of members.

The successful completion of the proof of concept, for the carbon tracing platform called COT, will be critical in helping to ensure traceability of emissions from mine to final product.

The founding members of the MMBI include mining majors and steel producers Anglo American, Antofagasta Minerals, Eurasian Resources Group, Glencore, Klöckner & Co, Minsur and Tata Steel. These companies joined forces in October 2019 to design and explore blockchain solutions to accelerate responsible sourcing in the industry.

The MMBI aimed to pool resources and cost, increase speed-to-market and improve industrywide trust that cannot be achieved by acting individually. It further aimed to be a neutral enabler for the industry, addressing the lack of standardisation and improving efficiency. The intention was to send out a signal of inclusivity and collaboration across the industry.

Moreover, by pooling resources and costs, the mining and metals companies aimed to accelerate future adoption of a solution for supply chain visibility and environmental, social and corporate governance (ESG) requirements.

Commenting on the announcement, Eurasian Resources Group CEO and Global Battery Alliance co-chair Benedikt Sobotka said that the company believes “that enhanced collaboration around blockchain technology is necessary to improve supply chain transparency and reporting on carbon emissions. The MMBI’s custom-built blockchain solution will allow customers to verify the environmental impact of the products they use, and we are excited to have entered the next phase of the platform’s development”.

Developed in collaboration with industry experts and supported by Dutch blockchain consulting firm Kryha, as well as by MMBI consortium adviser Susan Joseph, the COT not only tests the technological feasibility of the solution, but also explores the complexities of the supply chain dynamics and sets requirements for future data use. In doing so, the COT proof of concept responds to demands from stakeholders to create “mine-to-market” visibility and accountability.

“There is an increasing demand for metals and minerals, and an increasing demand for sustainable, responsible and traceable supply chains. There is a potential to create a full value chain view with downstream visibility, and partner with regulators and align our work with robust ESG standards, sustainability certification schemes and assurance frameworks,” said mining and metals industry head Jörgen Sandström in a statement issued in December.

This work lays the foundation for the next phase of the development and reinforces comprehensive feedback sessions with stakeholders. It also supports the MMBI vision to enable emissions traceability throughout complex supply chains and to create “mine-to-market” visibility and accountability.

“The distributed nature of blockchain technology enables cross-enterprise collaboration and makes it the ultimate networked technology. This opens exciting new possibilities that organisations otherwise would not have the capability to deliver on their own,” added WEF blockchain project lead Nadia Hewett.

Anglo American marketing CEO Peter Whitcutt stated that the company was committed to solving the physical challenges of mining and creating value for all stakeholders as defined in its sustainable mining plan.

“By leveraging cross-industry collaboration and the increasingly important role played by technology innovation, MMBI’s proof of concept can help to unlock the potential of blockchain to support a greater level of reporting transparency and drive responsible sourcing,” he said.

Antofagasta Minerals CEO Ivan Arriagada noted that the collaboration and practical development of the proof of concept shows how the industry can collaborate through new technologies, such as blockchain, to increase value across the supply chain.

“Working within MMBI allows us to innovate together by creating the beginnings of a new technical foundation to meet consumer trust and reduce risk, and offers new opportunities,” he said.

Tata Steel also claimed enthusiasm for the opportunity to collaborate and help create a more sustainable future.

“MMBI’s proof of concept is a first practical step to create a solution facilitated by blockchain technology to reduce emissions and conserve the environment,” concluded Tata Steel CEO and MD TV Narendran.