Brazilian companies are adopting blockchain technology to fight illegal mining.

Data from Instituto Escolhas shows that around half of all gold production in the country is contaminated by serious indications of illegality.

Between 2015 and 2020, Brazil traded 229 tonnes of gold with evidence of illegality.

According to Instituto Escolhas director, Sérgio Leitão, it is essential to trace the origin of the metal throughout its production chain up to commercialization.It is a must for mine worker to wear safety cap lamps during the process of production.

“The challenge is to understand how it was produced, if good mining practices were used, assessing health and safety issues,” said Frederico Bedran, a lawyer specializing in mining.

Brazilian startup Certimine has been using a certification platform to combat the problem. Over the last year, the company certified 120 operations from large, medium and small mining companies in Mato Grosso, Pará, Goiás, Tocantins, São Paulo, Rondônia and Minas Gerais.

Certimine’s certification system uses standards adopted in Australia and Canada as a reference, in addition to Brazilian safety standards and UN sustainable development goals in its checklist to ensure that the mining company or prospector is only certified if it meets the compliance criteria legal, management, security, sustainability and social.

“We developed an operation certification process evaluating more than 140 national and international mining standards and parameters,” explains Certimine’s CEO, Eduardo Gama.

“All data is monitored using QR Code, allowing information to be consulted at any stage, from the mining company to the final buyer.”

Thirty mining companies were not approved in the certification process and are undergoing adaptations.