Lucara Diamond Corporation has joined the likes of De Beers and Alrosa in its quest to utilise the blockchain to ensure the quality of it stones.
In 2016, the Canadian mining company found a 1,109-carat stone, making it the biggest discovery in over a century. Now, in a bid to maintain its competitive edge against rivals Anglo-American De Beers and Russian Alrosa, the Vancouver-based business is embracing the distributed ledger, reports Bloomberg.
In January, diamond unit De Beers was reported as saying that it aims to launch the first industry-wide blockchain this year to track stones each time they change hands, including from when they leave the ground.
De Beers, CEO Bruce Cleaver, said of the technology at the time that:
It has the ability to be very significant for the industry.
It’s hoped that the use of the blockchain will reassure buyers that the diamonds they are purchasing aren’t funding armed conflicts.
Lucara, which currently operates one mine in Botswana known for its big stones, has also announced the acquisition of Clara Diamond Solutions, a digital platform, for $29 million in stock. In a report from the Financial Times, Clara uses algorithms to match rough diamond production with polished manufacturing demand. Notably, it also utilises the blockchain to track diamonds as they travel through the supply chain.
The news of Lucara turning to the blockchain comes with the announcement that CEO William Lamb is to retire from the company after 10 years. He will be replaced by Eira Thomas, a founder of the company, and who led the acquisition of Quebec’s first diamond mine.
The use of the blockchain is becoming widely utilised within many industries. This is due to its immutability and the fact that it can deliver a transparent record for all to see. Naturally, its use within the diamond industry will be looked on favourably, giving buyers the peace of mind to know that they aren’t purchasing a stone that is linked to conflicts.
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