Innovation in the mining industry: Traceable mining as an effective solution to illegal mining

• The Peruvian State loses around S/. 23 billion a year due to tax and royalty evasion due to illegal mining.
• Illegal mining directly affects the value of copper by generating an unregulated supply in the market.

At a time when sustainability and environmental responsibility are a priority, traceable mining emerges as a proactive and effective alternative in the fight against illegal mining. Illegal mining not only poses a threat to the environment and the health of local communities, but also undermines market integrity and negatively affects the economy of affected regions.

Traceable mining uses advanced technologies, such as blockchain and geo-referencing systems, to ensure transparency and traceability at all stages of the mining process. This transparency not only helps prevent the entry of illegal minerals into the supply chain, but also promotes corporate social responsibility and ethics in the industry.

"Through traceability, the quality of the copper delivered can be certified. By implementing high-security tracking codes, it is possible to obtain information on the quality and origin of the copper that is traded, providing greater security to the buyer. Companies that have implemented traceability processes have managed to handle 99% of their product stock," added Patricio Rojas, CEO and founder of Antara.

Also through the implementation of traceability, it is possible to obtain clarity on the quantities and classifications of the ore that is ready to be marketed. This allows knowing exactly how much stock is handled at the plant, how much at the port and how much in transit. This ensures a chain of custody that increases the reliability of the copper process and also avoids losses due to poor stock regulation. In addition, Rojas comments on other benefits of this technology.

• Verification of origin: Consumers and companies can reliably verify the origin of minerals, ensuring that they come from legal and ethical sources.
• Reducing environmental impact: By monitoring and recording each stage of the mining process, traceable mining helps to identify areas for improvement and reduce the environmental impact of mining activity.
• Empowering communities: By ensuring transparency in payments and benefits associated with mining activity, traceable mining promotes the economic and social development of local communities.
• Regulatory compliance: Traceability facilitates compliance with environmental and labor regulations, ensuring that mining companies operate within established legal frameworks.

"With the implementation of traceability, it is possible to obtain clarity on the quantities and classifications of the ore that is ready to be marketed. This allows us to know exactly how much stock is handled at the plant, how much at the port and how much in transit. This ensures a chain of custody that increases the reliability of the copper process and also avoids losses due to poor stock regulation", concluded Rojas.

See original article in Revista Economía