Contxto – Peru is on Google’s radar as mining company Minsur partners with the multinational firm to launch a blockchain pilot project. The objective is to be able to trace and fully register the extraction processes of tin from Peruvian mines.
Blockchain and the mining industry
When it comes to the mining industry, there are some tight standards placed by global regulators and the market. It’s especially important that a company be able to trace an extracted mineral to its origin so as to avoid illegal trade.
As a result, mining firms must adhere to these parameters. This translates to the obsessive monitoring of all processes related to the extraction of minerals and precious metals. And it’s no walk in the park for them to monitor every scrap and ton of mineral that’s obtained.
Minsur, the chosen one
Prior to this initiative, there had already been pilots for blockchain in mining executed by other firms. However, they’d been carried out with smaller extraction companies that handle lower amounts of mined minerals.
Nevertheless, for Google, the real test of keeping tabs comes with greater volumes that are handled by larger firms. Meaning, if by developing a blockchain model that works with a bigger company, standards can be established for the entire mining industry.
So, the tech giant sought out a larger corporation. And mark my words, it was careful in digging through various options before selecting Minsur to carry out this pilot.
Apparently Google chose the Lima-based mining company because of its policies in sustainability and transparency. Now, considering that blockchain is all about giving greater transparency in information-sharing, it makes sense.
In addition, Minsur is a major extractor of tin and it holds the San Rafael mine, one of the largest tin deposits in the world.
Tin and technology
With the tech boom, the global demand for tin has risen. This is so because it’s used in circuit boards of devices like cellphones. However, it’s also made it more coveted in the mineral black market.
An unfortunate reality this pilot project wants to tackle.
Hopefully, this alliance can serve Latam countries like Peru and Colombia that are plagued by illegal mining. As it’s an activity that taxes the environment, the people involved, and the health of the overall mineral market.