Blockchain in the Mining Industry: Implications for Sustainable Development in Africa

This policy brief examines the application of blockchain and distributed ledger technologies (DLT) in the African mining sector, specifically for mineral traceability and due diligence. While these technologies offer a tamper-proof record of provenance, the authors argue that blockchain alone cannot guarantee ethical production and must be coupled with rigorous due diligence to prevent the exclusion of artisanal miners and the persistence of human rights abuses.

• Blockchain technology provides a tamper-proof, immutable record of transactions, ownership, and origin, but it only guarantees traceability and does not inherently ensure that minerals are produced or traded responsibly.
• To ensure minerals are responsibly sourced, blockchain must be integrated with due diligence practices, such as the OECD Due Diligence Guidance, to mitigate risks of conflict financing, corruption, and human rights abuses.
• A critical technical limitation of blockchain is that it cannot verify the accuracy of the initial data entered into the system; it only protects that data from being altered once it has been uploaded.
• The diamond industry has seen a surge in blockchain initiatives like Everledger, De Beers' Tracr, and TrustChain to combat 'blood diamonds' and the rise of synthetic gemstones, as diamonds lack a reliable chemical 'signature' for origin verification.
• There is a significant risk that blockchain implementation may marginalize artisanal and small-scale miners (ASM) due to high costs, lack of low-tech access solutions, and a lack of clarity regarding data ownership and benefits for upstream actors.
• Specific blockchain and digital tracking pilots are being implemented in the Democratic Republic of Congo (DRC) for cobalt and gold, including projects by RCS Global, the Better Sourcing Program, IMPACT, and Consensas.

APA

CALVÃO, F., & GRONWALD, V. (2019). Blockchain in the Mining Industry: Implications for Sustainable Development in Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2019/09/Policy-Insights-74-calvao-gronwald.pdf

Chicago

CALVÃO, FILIPE, and VICTORIA GRONWALD. Blockchain in the Mining Industry: Implications for Sustainable Development in Africa. South African Institute of International Affairs, 2019. https://saiia.org.za/wp-content/uploads/2019/09/Policy-Insights-74-calvao-gronwald.pdf.

Wikipedia

{{cite report |last1=CALVÃO |first1=FILIPE |last2=GRONWALD |first2=VICTORIA |title=Blockchain in the Mining Industry: Implications for Sustainable Development in Africa |publisher=South African Institute of International Affairs |date=August 2019 |url=https://saiia.org.za/wp-content/uploads/2019/09/Policy-Insights-74-calvao-gronwald.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{calvo2019blockchain, author = {CALVÃO, FILIPE and GRONWALD, VICTORIA}, title = {{Blockchain in the Mining Industry: Implications for Sustainable Development in Africa}}, institution = {South African Institute of International Affairs}, year = {2019}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2019/09/Policy-Insights-74-calvao-gronwald.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }