Blockchain Technology in Mineral Extraction Supply Chains: An Ethiopian Perspective on Transparency in DRC

The Democratic Republic of Congo (DRC) is a significant producer of minerals globally, including cobalt and copper, which are crucial for electronic device manufacturing. Ethiopia imports these minerals from DRC through complex supply chains that lack transparency, leading to concerns over environmental degradation and human rights violations. A mixed-methods approach was employed, including surveys among miners and industry stakeholders in both countries, as well as a case study of a selected mining operation in DRC that implemented blockchain technology for supply chain management. Data were analysed using thematic analysis to identify themes related to transparency improvements. Blockchain implementation led to an increase in traceability from the point of extraction up to the final product, with over 90% of respondents reporting improved visibility and accountability across the supply chain. However, cost implications for smaller mining operations were noted as a significant challenge. While blockchain technology shows promise for enhancing transparency in mineral extraction supply chains in DRC, further research is needed to address its scalability and affordability issues. Governments of Ethiopia and DRC should consider pilot projects to assess the feasibility and benefits of blockchain in their respective mining sectors. Additionally, support from international organizations could help mitigate costs for smaller miners. Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.