Thread by @origin_iota

1/x Minds over Markets🚩We would like to follow on from part 1/2🧵of our thread. If you missed it, look it up here.

https://twitter.com/origin_iota/status/1511683980487241728?s=20&t=1iSaClSCOfS1diYSnAOWJQ

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thread below part 2/2🧵⬇️
#IotaOrigin #IOTA #ASM $ASMB $SMR #Mining
#gold

2/x Summary part1:The world's top gold producers are changing their strategy and increasing their resources through acquisitions. However, acquirable resources are limited while exploration investments are undervalued. What does this mean for African artisanal-small-scale mining?

3/x Exploration spending in Africa fell by $111 million in 2020. This represents a -10% drop and is a record low for spending in Africa. The biggest loser of the % cuts is the DRC, with exploration spending falling to $140 million at last count.

4/x Spending on gold exploration in the DRC has even fallen below $20 million. The majors are mainly responsible for this. @BarrickGold, for example, is cutting its spending by 72% to 7 million. As in part 1 of our thread, this is mainly due to the majors' new strategy.

5/xWhile total spending on Africa is at 12% of the global budget and thus at an all-time low, discoveries have been the highest since 2011. In summary, junior and grassroots projects in africa are undervalued and they are the ones that can mitigate the impending supply shock.

6/x Impact investing is growing from US$77.4 billion in 2015 to US$2 trillion by the end of 2025.
ASM has not yet been able to benefit enough from this growth. As already mentioned, ASM suffers disproportionately from a negative reputation in the investment industry.

7/x However, this skews the overall picture of the sector, also in the context of our analysis. The perceived risk is greater than real risk. In markets where perception and facts are so far apart, there is usually huge potential for investment and innovation.

8/x some bulletpoints about the ASM market:

- Investors have interest in responsible sourcing (increasing market demand from small level) and impact investments but also in responsible consumer markets
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9/x

- Formailisation measures have been adopted by governments - see DRC and Sudan. As the sector can contribute fundamentally to building a middle class. This is also recognised by the UN, where small-scale mining can contribute significantly to the UN SDGs.
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10/x
- Increased international focus on regulated markets. see e.g. EU Conflict Minerals Act, OECD Guidelines, US Dodd-Franc Act Section 1502.
- Gold content in small-scale mining and ASM is much higher (5g-60g per tonne) compared to industrial mines.
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11/x
- ASM are present in operations. The risk of misinvestment within exploration is thus significantly lower.
- Investments can increase production by 30% with the simplest of means.
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12/x
- Social tensions are reduced as mining is carried out by local communities and not by foreign companies.
- Investment in equipment reduces the impact on the environment. For example, using technology to eliminate mercury or using tailings for infrastructure projects.
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13/x
- High ROI in a shorter time over the life cycle of an ASM mine compared to industrial mining 30-40% ROI per year.

14/x IotaOrigin aims to achieve the greatest benefit for people and the environment within this foreseeable development. 20% of annual gold production is from artisanal small-scale mining.
A rapidly rising gold price can have severe consequences in this sector.

15/x These include, above all, exploitation in connection with high environmental damage, but also the high potential for conflict, which leads to increasing human rights violations against women (30% of people working in small-scale mining and ASM are women) and children.

16/x Together with our partners from the mining industry as well as civil society and governmental organizations, we would like to establish an ESG compliant commodity trading platform for the trade of commodities from this dispersed sector.

17/x The investments that flow into the sector should help local communities and limit environmental damage. Small-scale mining and ASM has a bad image, but according to the UN, it can contribute significantly to the achievement of the UN SDGs.

18/x More than 45 million people work directly in the sector, and over 150 million people depend on it. ASM sector should be seen as a starting point for economic development in conflict-affected countries and used as an opportunity to build prosperity and peace.

19/x IotaOrigin operates primarily in the eastern part of the Democratic Republic of Congo. There are extremely many artisanal mines in the east of the Democratic Republic of Congo, which could benefit one of the poorest regions in the world.

20/x The DRC is making great strides in formalizing the sector, but the poor image of the sector prevents international investment and illicit financial flows continue to dominate the market.

21/x The small-scale mining and ASM sector in DRC currently produces about 20 tons of gold, 99.9% of which leaves the country untaxed. IotaOrigin would like to break this cycle and implement its free tracking system to comply with international regulations. But more is needed.

22/x For ESG compliant investments, we like to announce a DAO that will enable investments in small-scale-mining and ASM while supporting local communities, avoiding environmental damage and contributing to the UN SDGs.

23/x For the first time in human history, IotaOrigin enables digital participation in a gold rush, providing the greatest possible value for the people and communties involved. The DAO should not only facilitate investments, but create transparency in the financial flows, ...

24/x ... evaluate data from our tracability system to build applications for smart citys and find synergies in other sectors like agriculture. Furthermore, insurance and loans for miners should be more acessable in order to free them from illegal financing.

25/x We bring DLT back to the roots and bank the unbanked! The goal is to create the largest decentralized digital ESG fund to enable the responsible sourcing of raw materials for the energy transition, eliminate human rights abuses, and promote sustainable development.