Connecting the Dots Across the Mining Supply Chain with Distributed Ledger

As those working in the sector know, mining can be a remote and messy business.

Many mines are in far flung, difficult to access locations by necessity based on where the desired metals or minerals are discovered.

Adding to this the nature of variances in multiple assays of the same materials, based on quality and/or purity, just increases critical need for the positive, unique identification and the volumes of associated data.

And when it comes to messy, the mining industry has had a bit of a checkered history when it comes to the ESG topics of the environment, labor and related governance to name a few.

KNNX and Teck Resources are together now utilizing blockchain technology to trace responsibly-produced germanium from the mine to the customer, the first such use of blockchain to trace this critical mineral.

Teck is North America’s largest producer of germanium, a critical mineral and one of the integral elements required for digital devices and communications. It is an essential component in fiber optic cables and high-speed computer chips and circuitry. Beyond its use in communications technology, germanium is also important for low-carbon technologies such as solar cells and light-emitting diodes (LEDs). Germanium is considered essential for communications technology and the transition to a low-carbon economy.

This application is in support of Teck’s Sustainability Strategy goal to develop a product passport, providing traceability into the raw materials supply chain. Through the initial phase, germanium will be traced from its origin at Teck’s Red Dog mine in northwest Alaska, through transport and comingling with other sources, refining at Teck’s Trail metallurgical facility and finally to a manufacturer of fiber optic cable. Blockchain technology will be used to embed data including information on responsible environmental, social and governance practices along the supply chain, such as greenhouse gas emissions, product certifications and responsible production assessments.

“Teck is proud to be advancing the first use of blockchain technology to trace the critical mineral germanium from the mine all the way to the customer,” said Marcia Smith, Senior Vice President, Sustainability and External Affairs, Teck. “Ensuring the environmental and social responsibility throughout the metals production chain provides our customers and downstream consumers with the confidence that their products are sourced responsibly.”

Blockchain Technology

Over the past decade businesses have identified many uses for blockchain technology from the settlement of financial records to smart contracts and reliable, transparent traceability of supply chains. In the materials space, initial applications of blockchain-enabled supply chain traceability have generally focused on products with high risk of counterfeiting or abuses, such as conflict minerals. Teck believes that materials traceability and assurance of both origin and handling of the product along the supply chain can play a role in supporting responsible production more broadly for essential metals and minerals.

Teck has partnered with KNNX to create an initial blockchain-enabled solution to serve as the backbone for tracing materials. Utilization of blockchain enables all key figures along the supply chain to have appropriate visibility into the material flow, and to ensure responsible production practices through each step. Teck and KNNX are utilizing KNNX Asset Track? to map the germanium supply chain, and to provide downstream customer visibility into the chain.

“KNNX is proud that its KNNX Asset Track? product is being adopted by Teck in setting the standard for an innovative product passport. This product passport collects, stores, and provides reliable, tamper-proof, and real-time data at every stage in the resource supply chain from end-to-end, including comprehensive information about the provenance of the resources.

Certainty of mine of origin, provenance and single source of truth are essential building blocks for an effective ESG program. This single source of truth enables the next generation of intelligent and sustainable supply chains, which use data to maximize efficiency while maintaining the transparency essential for constant and careful monitoring. It enables the highest levels of trust and collaborative resource stewardship among Teck, its business partners and all stakeholders.

Are you interested in connecting the dots in your mining supply chain? If so just reach out and we'll be happy to connect with you and share more details!

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Jeff Ashcroft

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