Norilsk Nickel joins responsible sourcing blockchain network
MOSCOW – Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces that it is joining the Responsible Sourcing Blockchain Network (RSBN), industry collaboration among members across the minerals supply chain using blockchain technology to support responsible sourcing and production practices from mine to market.
The move to join RSBN comes after Nornickel announced a broad strategy to utilise sophisticated digital technologies to create a customer-centric supply chain, which would include metal-backed tokens on the global Atomyze platform, a tokenization platform that represents physical assets in digital form. Both the Atomyze and RSBN platforms were developed by leveraging Hyperledger technology, with IBM’s participation.
With Nornickel joining the RSBN, a series of its supply chains will be audited annually against key responsible sourcing requirements by RCS Global. The audits cover each stage of the company’s vertically integrated operations from Russian mines to refineries in Finland and Russia.
Once audited against responsible sourcing requirements, each supply chain will be brought on to the RSBN and an immutable audit data trail will be captured on the platform, proving responsible nickel and cobalt production, its maintenance and its ethical provenance.
Integration with RSBN is yet another step for Nornickel towards achieving greater business sustainability by creating a permanent record of minerals on the blockchain. At later development stage, data such as upstream carbon intensity and other ESG attributes will be tracked.
Anton Berlin, Nornickel’s Vice President, Sales and Distribution, commented: “As one of the largest industry groups globally and the producer of the minerals essential for the transition to a carbon-free world, Nornickel is well aware of its responsibility to make the metals supply chains sustainable and highly transparent. We believe that the digital technologies of RSBN and Atomyze will create the path for Nornickel and its partners to participate in a circular value chain, tracing commodity flows in near real time as well as replacing cumbersome paperwork.”
RCS Global CEO, Dr Nicholas Garrett added: “The RSBN has proven that responsible sourcing can be traced and documented using blockchain technology. Assuring Nornickel’s supply chains is another milestone engagement for RCS Global and Nornickel’s commitment to the RSBN and demonstrates momentum for blockchain backed responsible sourcing platform in the metals sector.”
Built on IBM Blockchain technology and powered by the Linux Foundation’s Hyperledger Fabric, the RSBN platform helps improve transparency in the mineral supply chain by providing a highly secure and immutable record that can be shared with specified members of the network. Additionally, RCS Global Group assesses each participating entity both initially and annually against responsible sourcing requirements set by the Organization for Economic Cooperation and Development (OECD) and those enshrined by key industry bodies, including the Responsible Minerals Initiative (RMI).
“Norilsk Nickel is an important addition to the Responsible Sourcing Blockchain Network and we look forward to their contributions to help advance the assurance for responsible sourcing and the group’s sustainability goals that have a direct impact on successful and accountable development for entire industries.” — said Manish Chawla, Global Managing Director, Chemicals, Petroleum & Industrial Products, IBM.