The largest diamond mining firm in the world in terms of production volume, Russia’s Alrosa, is joining hands with another major diamond mining firm in the industry named De Beers. The team up is to pilot a diamond supply chain platform “Tracr,” according to the news outlet Mining Weekly reports dated October 29.
Alrosa is the largest producer in the world when it comes to raw diamonds in carat terms. Both the diamond mining giants Alrosa and De Beers reportedly turn ups production which calculates for half of the world’s supply.
Even with the decline in carat sales, the third quarter of 2018 brought a 12% increase in the yearly diamond sales for the company, which reached $949 million in value.
The introduction to the potential blockchain platform was first announced publically back in January. It detailed on how the new technology platform can help such major mining firms to improve regarding consumer trust and transparency in the journey of mining to retailing in the diamond value chain.
Tracr platform is expected to work by creating a digital certificate for every diamond which will record the transactions related to the particular diamond. This information and transaction history will be recorded immutably on the blockchain platform and will allow the buyers to verify the diamonds they are purchasing are genuine and conflict-free.
Also known as “blood diamond,” the conflict diamonds is a concern for the diamond mining industry on a global level. It is termed for the uncut diamonds which mined in a war zone, a conflict area, and are traded unlawfully for combat means and war weapons.
As a result, the main “common goal” is what brings the two mining giants of the same industry together. According to Sergey Ivanov, CEO of Alrosa, both the companies have the same vision for the upcoming industry which is what brings them together to test the blockchain pilot program and claims to provide cooperation for best results.
Tracr, developed by De Beers, will work complementarily with the existing schemes and regulations which functions the industry when it comes to derivation and quality of the diamonds. The current systems are the Kimberley Process Certification Scheme, Responsible Jewellery Council Code of Practices, and World Diamond Council System of Warranties.