Trace Conflict-Free Tantalum Supply Chains
Sector: Primary sector · Industry: Mining and raw materials · Organisation: Circulor · Maturity level: Production
Circulor deployed a blockchain-based traceability system in fall 2018 across three mines and an ore-sorting facility in Rwanda to track tantalum. The platform records the movement of the mineral from the mine all the way to the manufacturer in a tamper-proof manner. This enables industrial buyers to verify compliance with conflict-free mineral sourcing requirements transparently and verifiably.
Documentation status
- Project status: Production (as of 01 September 2018) — The system went live in autumn 2018 at three mines and a sorting facility in Rwanda.
- Evidence: Evidence medium
- Editorial review: pending
Description
Circulor implemented a blockchain platform for tracing tantalum to make the raw material journey from mining sites in Rwanda to processors transparent. In many industrial supply chains, the exact origin of raw materials is difficult to determine due to complex intermediaries. By recording every handover point in the distributed ledger, industrial companies can ensure that sourced ores come from legal and conflict-free sources.
The British technology company Circulor launched the project in autumn 2018 as the first documented 'Mine-to-Manufacturer' tracking approach for tantalum. The system was deployed directly on site at three Rwandan mines and an associated ore sorting facility to digitally record extraction batches at the point of origin. The platform, based on a closed blockchain architecture, stores data immutably and links it with subsequent transport and refining steps. The aim of the implementation was to meet the strict international requirements for due diligence on conflict minerals with digital evidential power. The project demonstrated the practical viability of distributed ledger systems under demanding conditions in the primary sector and created an auditable data basis for downstream customers.
Perspectives
B2B — organisations perspective
For companies along the supply chain, the platform offers a tamper-proof proof of origin that facilitates audits and minimises sanction risks. Processing industries can provide seamless evidence to regulators and customers that processed tantalum comes from conflict-free sources.
B2C — consumers perspective
For end consumers, the use is primarily indirectly relevant, as consumer goods such as smartphones receive more reliable statements about responsible raw material sourcing. Direct interaction of consumers with the system is currently not planned.
Employees perspective
Employees at mining and processing sites record raw material data directly digitally, gradually replacing traditional paper-based accompanying documents. This reduces recording errors and speeds up inspection processes during the handover of ore deliveries.
Benefits
General
- Seamless and tamper-proof proof of raw material origin
- Reduction of fraud and mixing of uncertified ores
- Increased transparency for all actors involved along the supply chain
B2B — organisations
- Efficient fulfilment of legal requirements on conflict minerals
- Reduced manual effort in supply chain audits
- Strengthening reputation as a responsible purchaser
Employees
- Standardised digital handover processes instead of confusing paper records
- Faster processing of inspection and sorting operations on site
Challenges
General
- Ensuring physical correspondence between digital data record and real raw material package
- Limited connectivity and infrastructure at remote mining sites
B2B — organisations
- Need to involve all intermediaries and refiners in the same platform
- Protection of confidential price and quantity data against competitors in the ledger
Employees
- Training effort for operating personnel at sorting and weighing stations
Technology foundation
A closed, permissioned distributed ledger technology is used, which immutably secures transaction data along the supply chain. This architecture protects sensitive trade data between mines, processors and end manufacturers while simultaneously ensuring shared auditability.
Implementation examples
Circulor Tantalum Tracking in Rwanda
International regulations and industry standards require proof that sourced tantalum does not come from conflict regions or illegal sources. Paper-based documentation is prone to errors and forgery, which is why tamper-proof digital traceability was necessary.
Circulor implemented a blockchain system to track tantalum in three Rwandan mines and an ore sorting facility. The solution enabled the first seamless traceability of the mineral from the extraction site to the manufacturer.
In autumn 2018, the British company Circulor deployed its blockchain solution in Rwanda to trace tantalum from the mine to the end manufacturer. The system was implemented in three mines as well as an ore sorting facility in production operation. The platform registers batches at extraction and immutably documents every subsequent transaction step to securely prove the conflict-free origin of the metal.
The solution addresses the problem of insufficient transparency in upstream raw material stages and prevents the illegal mixing of ores. Additionally, the project overcame the challenge of reliably collecting digital data under simple local infrastructure conditions.
Tags
Supply chain, Raw material tracking, Proof of origin, Conflict minerals, Auditability