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The Missing Links in Mining's Blockchain Plans

The mining industry should focus on developing regional blockchain platforms and partnerships with governments, regulators and consumers because it is not yet ready to launch a unified platform for critical minerals, say industry experts.

Environmental, social and governance (ESG) targets mean manufacturers must be transparent over where their components come from, particularly minerals used in batteries and electronic goods.

Mines are at the beginning of mineral supply chains, and mining operators need to prove they extract minerals ethically and sustainably. Otherwise, their businesses and reputations may suffer.

This issue is particularly true in regions with high deposits, and miners should concentrate on building traceability at source and regionally to get the best outcome for customers and pursue direct sourcing agreements with end users.

According to Gopikrishnan Konnanath, senior vice president and global head of engineering and blockchain services at Infosys, an international standard for "regulatory compliance and responsible sharing" in the mining industry is "a long way ahead".

Konnanth said the mining industry's challenges are "unique" because it still relies heavily on "human input for sourcing" and is "heavily regulated" country-to-country.

He commented that a specific and customisable blockchain platform "which is built ground up for the mining industry" would require collaboration between government and industry leaders.

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