Around 3,000 t of gold are mined each year, 50% of which goes directly into bank vaults. Environmental, social and governance finance firm Nature’s Vault aims to keep gold in the ground, avoiding carbon emissions and the environmental impact of mining, while providing investors with stable, tradable tokens representing what they dubbed “nature’s gold” or eco-friendly gold.
“In many jurisdictions, investors and investment companies must report the carbon associated with the gold investments they own, causing gold to become negative on their balance sheets in terms of greenhouse gas emissions. greenhouse and carbon effect,” says the CEO of Nature’s Vault. Phil Rickard.
“We have tokenized some of our gold mining assets and started with private token sales. We have found that what resonates the most with investors is the opportunity to buy an environmentally friendly gold related product. “, he notes.
Nature’s Vault acquires mining assets and then verifiably undertakes not to mine them. The tokens are created based on the quantified reserves of a mine, based on international mining and geological standards, and the company assures investors that they will retain their assets in perpetuity, based on ownership of the mining rights for the deposit.
“The amount of gold subject to tokenization is based on internationally recognized geological standards, such as the Joint Ore Reserves Committee, or Jorc, code and National Instrument 43-101, verified by accredited third parties,” Rickard explains.
“Anywhere in the world where the environment is pristine with gold underneath, we believe the gold is best left in the ground. Our first mine in Canada is in a beautiful area at the edge of a lake, and there are equally beautiful and pristine places with gold below in North America and Southeast Asia, as examples.
What Nature’s Vault needs is a stable and predictable rule of law to ensure consistent regulations and mining rights.
“Since we do not intend to mine the deposit, we need to ensure that the mining rights and licenses remain consistent, as we guarantee this to our token holders,” he says.
One of the reasons the company started with its first mine in Canada is that it could hold a patented claim to the mining rights, which makes it easier to secure the rights of token holders and ensures that the company is able to keep the gold in the ground, says Rickard.
Countries and jurisdictions with advanced and stable mining regulations and laws hold the greatest potential for Nature’s Vault. Within these parameters, Nature’s Vault is open to discussions with mines anywhere in the world and is approached regularly, he adds.
“We provide a service to keep a quantifiable amount of gold in the ground, and we envision that the tokens will trade based on a relationship to the price of gold which will be set by the markets. We are also developing a protocol avoided mining which may allow us to offer carbon credits to token holders to provide an additional benefit.”
As an environmental, social and governance funding platform, Nature’s Vault will use proceeds from token sales to buy more mines, and also establish projects that remove or avoid carbon to provide carbon credits to investors’ wallets.
For example, Nature’s Vault has implemented Project Sawa, which aims to solve the problem of burning agricultural waste across Asia. About 50 million tons a year of agricultural waste is burned across Asia and the project works with farmers to turn their waste into usable products.
“This then generates valuable carbon removal credits, the revenue from which is shared with the farmers, who earn a little more money for the same work,” says Rickard.
In addition, Nature’s Vault is also exploring potential projects in the blue economy.
“As a group of seasoned business leaders, our goal is to provide business solutions to some of the most pressing environmental issues facing the planet,” he said.
“We bring our approach to tokenizing environmental, social and governance projects and natural capital assets to help mitigate climate change transparently through distributed ledger technology and a platform that can be replicated and scaled. scaled for future growth.”
Nature’s Vault is creating a blockchain-based platform to tokenize projects focused on preserving natural capital, which is the planet’s natural resources, Rickard says.
“Our initial project avoids the environmental impact and carbon emissions associated with gold mining by using tokenization to monetize the value of underground gold deposits by preserving quantified gold reserves.
“It’s time for some minerals and metals to stay in Nature’s Vault,” he says.