Russian Diamond Producer Alrosa Joins De Beers’ Blockchain Traceability Platform Pilot

Blockchain, News | October 30, 2018 By:

Russian diamond mining giant Alrosa has joined the pilot program of fellow industry giant De Beers’ end-to-end diamond industry blockchain traceability platform Tracr.

Alrosa specialize in exploration, mining, manufacture and sale of diamonds. The company leads the world in diamond mining by volume. It is Russia’s leading diamond company accounting for 95% of the country’s diamond production and 27% of the global diamond extraction.

Founded in 1888, De Beers is an international corporation that specializes in diamond exploration, diamond mining, diamond retail, diamond trading and industrial diamond manufacturing sectors. It sells approximately 35% of the world’s rough diamond production through its global sightholder sales and auction sales businesses.

Tracr, which was first announced by De Beers in December 2017, provides a single, immutable record that traces a diamond’s individual journey through the value chain. The platform is meant to give buyers confidence that the stones they are buying aren’t fakes or conflict diamonds, also known as blood diamonds. It works by creating a digital certificate for each diamond that records key attributes and transactions. De Beers’ first successfully implemented the platform to track 100 high-value diamonds in May of this year.

De Beers said Alrosa’s involvement with Tracr would provide enhanced assurance for consumers and trade participants about the provenance and authenticity of their diamonds, and in creating a digital foundation for new services that can only be developed on an end-to-end platform.

“We are delighted that Alrosa has joined the Tracr pilot, as the collective efforts of the world’s two leading diamond producers will enable more of the world’s diamonds to be tracked on their journey from mine to retail,” said Bruce Cleaver, CEO of De Beers Group. “Having a critical level of production on the platform will deliver significant benefits for consumers and diamond industry participants.”

Sergey Ivanov, CEO of Alrosa, said that traceability is the key to further development of the diamond market.

“Traceability helps to ensure consumer confidence and fill information gaps, enabling people to enjoy the product without any doubts about ethical issues or undisclosed synthetics,” Ivanov said. “Alrosa is glad to participate in testing Tracr, along with other market solutions. We believe tracing requires industry cooperation and complementation for the sake of a common goal.”