Our proposed solution removes the confusion about the origin of Congolese minerals and elsewhere sold on the international market and it is a solution that values the first operator following the production chain from mining to sale.
Blockchain lends itself well to this solution as it allow small-scale artisanal miners to register at a quarry which will certify their produce.
Alignment with Challenge KPIs
Mineral traceability is a key application for nation building due to the persistent pitfall of the “resource curse” which in Congo, we identify mostly to informality of the trade and the proposal fulfils the Nation-building Challenges as follows:
Proposers commercial approach and negotiation strategy with different Governments
Artisanal and small-scale miners are often neglected in negotiations involving governments due to the individualistic nature of mining. A DApp to repertory small-scale miners will allow the Goma Cardano Hub to promote their certification to government officials.
Participation of Cardano's Local Community Centers
Having hosted the Cardano Summit in Oct 2021, a Wada Hub with weekly meet-ups to learn Haskell and Plutus through project-based learning, the Goma Cardano Hub is a thriving community of Cardano adopters and members regularly attend Town Halls and other digital events. By lending their knowledge to cooperatives and individuals involved in mining activities, which constitute the main economic activity in the area Goma, the Cardano Hub can attract the investments of these businesspeople in other crypto related activities. They can join Cardano by staking to the Goma Cardano Pool.
Participation and/or partnerships with other international organizations
With one of the largest United Nations missions in the world headquartered in Goma, the implementation of a popular blockchain Dapp is likely to raise interest among international organizations seeking efficiencies.
Local Insight
Smuggling happens when a miner is unregistered and relies on third-parties to sell his/her minerals. Local intermediaries who are registered offer significantly less than those who are based in surrounding countries. By having small-scale miners registered at a quarry, buyers can validate the mineral as their composition can be traced to similar minerals mined at the same quarry.
A miner would be able to sell beyond his quarry while still maintaining both ownership and certification.
Furthermore, the minerals will always be linked to the original miner who can, over time, build his reputation as a producer.
By using blockchain, a small-scale miner would no longer be required to sell at a foreign-based reseller or join a cooperative where the owners offer lower prices.
Risks:
- Integration of certification: Current Certified Trading Chains (CTC) certification scheme is based on large mining holding offering to sell the mineral under their certificate.
- Tracing: Small-scale miners often change quarries due to either insecurity or grade levels being depleted.
Solutions:
- Blockchain-based Certified Trading Chains (CTC) certification schemes are already being implemented in the cofee industry with considerable success as small-farmers are able to combine their holdings to challenge the monopoly of intermediaries.
- Atala-Prism based identification are not centralized and even if small-scale miners move to another quarry, they can still be issued new certifications at the quarry.