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

The document examines the use of distributed ledger technologies (DLT) and blockchain in the mineral sector to address conflict minerals and improve supply chain management. While blockchain offers a tamper-proof record of transactions and origin, the authors argue that it cannot guarantee socially or environmentally responsible practices on its own and must be coupled with rigorous due diligence. The brief highlights the risk of digital exclusion for artisanal and small-scale miners (ASM) and the potential for private data ownership to marginalize upstream actors. It recommends that blockchain initiatives integrate recognized responsible mining standards, ensure data transparency, and design inclusive protocols for mining communities.

• Blockchain technology provides a tamper-proof and immutable record of transactions, ownership, and origin, which can reduce the need for third-party intermediaries to verify supply chain information.
• Blockchain alone is insufficient to ensure ethical production; it only guarantees the traceability of the data entered, meaning it could potentially trace minerals that were produced or traded irresponsibly.
• To ensure minerals are responsibly sourced, blockchain must be combined with due diligence practices, such as the OECD Due Diligence Guidance, to assess and mitigate risks like human rights abuses and environmental damage.
• A critical technical vulnerability is the 'first data entry point,' as blockchain only protects data from tampering after it has been uploaded and cannot guarantee the initial accuracy of human-entered data.
• There is a significant risk that blockchain adoption will marginalize artisanal and small-scale miners (ASM) due to a lack of low-tech solutions, the costs of implementation, and a lack of clarity regarding data ownership and agency.
• The diamond industry has seen several blockchain initiatives, including De Beers' Tracr, Everledger's global registry, and the Kimberley Process's exploration of the technology to reduce fraud and human error.

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} }