Norilsk Nickel Joins Responsible Sourcing Blockchain Network
MOSCOW, January 14, 2021 (Newswire.com) - 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), an 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.
RSBN is designed to be adopted across industries by original equipment manufacturers (OEMs) in automotive, electronics, aerospace and defence, as well as their supply chain partners such as mining companies and battery manufacturers. For more information, please visit here.
About The Responsible Sourcing Blockchain Network
Built on the IBM Blockchain Platform, assured by RCS Global Group and powered by the Linux Foundation's Hyperledger Fabric, the RSBN blockchain platform is designed for cross-industry adoption. Providing traceability and verification of responsible sourcing practices from mine to market through end-to-end supply chains, the solution is a network accessible to companies at every tier of the global value chain. Focus industries include, but are not limited to automotive and electronics, including their supply chains and the mining sector. A governance board representing members across these industries is being formed to help further ensure the platform's growth, functionality and adherence to good practice principles.
In order to join the RSBN, companies complete an on-boarding assessment against the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as well as additional responsible sourcing good practice standards and compliance verifications. Vertically integrated participants complete an on-boarding assessment both at headquarters and at participating asset levels, verifying the respective member's responsible sourcing management systems and practices on the ground.
Atomyze LLC is the U.S. branch of a global fintech platform that digitizes and modernizes the trading experience for products, assets and commodities by providing investors the ability to directly and safely invest in the actual underlying commodity. Using technology powered by blockchain, Atomyze will provide a marketplace for investors to buy digitized assets of any kind, including commodities, for issuers to trade their assets on blockchain, and for the management of supply chain contracts between issuers and commercial users.
ABOUT THE COMPANY
MMC Norilsk Nickel is a diversified mining and metallurgical company, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products.
The production units of Norilsk Nickel Group are located at the Norilsk Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as well as in Finland and South Africa.
MMC Norilsk Nickel shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges, ADRs are traded over the counter in the US and on the London, Berlin and Frankfurt Stock Exchanges.
Source: MMC Norilsk Nickel