Page 56 - 25 Reasons

iamonds may have been
forged from heat and carbon
millions of years ago, but
these ancient gems will soon
benefit from cutting-edge
Dmodern blockchain
technology to reassure buyers that they are
the real, ethically sourced deal.
An initiative by Anglo American’s diamond
business, De Beers Group, is harnessing the
possibilities of the fourth industrial revolution
(4IR) to ensure that each authentic diamond
produced has a permanent digital record that
cannot be tampered with.
In an industry whose reputation has taken
a knock from the twin phenomena of so-
called blood diamonds and fake stones, this
blockchain “fingerprint” will ensure that each
party in the value chain will know the exact
origin and provenance of the diamonds it
processes, sells or buys. With the significant
investment in diamonds in South Africa,
ensuring their authenticity is paramount.
The new platform, called Tracr™, is the first
to digitally track a diamond’s journey from An employee holds a 118.28 carat, flawless D colour Magnificent Oval Diamond at
mine to consumer. Having been successfully Sotheby’s auction house in New York on September 4 2013. It was first discovered in
piloted by De Beers Group in collaboration deep mines in southern Africa and chiselled from a huge 299 carat rough. This gem’s life
with leading diamond producers, history will be in its digital DNA – available for anyone to read PHOTO: REUTERS
manufacturers and retailers, this revolutionary
technology is being scaled up to meet the
needs of all possible users. Once it is rolled
out, it will be available to the entire diamond
industry. 4IR
For the industry, by the industry
“It’s being designed by the industry, for the
industry,” explains Feriel Zerouki, the De Beers
Group’s senior vice-president of international
relations and ethical initiatives. “We are very
pleased with the progress and success of the
pilot programme to date.” DIAMOND DNA
The world now eagerly awaits the launch of
this pioneering digital platform aimed at
“creating a robust data-sharing ecosystem that
responds to consumer requirements, while IS FOREVER
simultaneously driving better business
efficiency” in the diamond industry.
Zerouki is excited about the technology
that has given rise to this innovation, which
may well have other mining-related Anglo American’s diamond business De Beers Group
applications.
“For each diamond, we create a unique is using blockchain technology to ensure each diamond
digital asset that is a direct representation of
its physical counterpart,” she explains. “The is the real McCoy, writes Helen Sheridan
blockchain is where these digital assets are
created, amended and secured, underpinning sourcing the gems responsibly. an additional integrity standard will go a long
consumer confidence while also enhancing Global demand for diamonds has remained way towards allaying those fears by shoring
efficiency across the sector.” strong and the industry has shown resilience up consumer confidence in diamonds. Zerouki
Since the implementation of the in recent years. However, Zerouki says that points out that brands and retailers such as
Kimberley Process – an agreement that some people still harbour niggling doubts Forevermark and Tiffany are already providing
unites administrations, civil societies and about the gems. guarantees of responsible sourcing and
industry in reducing the flow of conflict “Through our research in the US last year, a provenance, and that “Tracr™ will complement
diamonds – and other initiatives such as the small minority of consumers – 7% – told us all of these efforts by giving an immutable
De Beers Group’s own best practice that the reason they did not acquire diamond digital record of the diamond’s journey”.
principles in 2005, the industry has made jewellery in the previous year was that they Tracr will not only give the lover of timeless
impressive strides in highlighting the did not trust that the diamond jewellery sold jewellery an assurance of a diamond’s
importance of a responsible diamond supply in stores had been responsibly sourced. provenance, traceability and authenticity, it
chain. Elsewhere in the world, our research shows a will benefit the whole diamond value chain
GlobeScan research among thought leaders negligible percentage of consumers with this “from large diamond producers to small
shows that the industry is widely respected view.” family-owned businesses” by enabling them to
for doing, or trying to do, the right thing by It’s hoped that the introduction of Tracr™ as communicate and trade more efficiently.
56 ANGLO AMERICAN 25 REASONS TO BELIEVE