Story

From episodic audits to a structured foundation.

KOTA answers a narrow need, but it rests on a broader argument: the artisanal mining sector, and the value chains around it, stay excluded as long as the data describing them belongs to everyone except the people doing the work.

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Chapter 01 · The predicament

The supply-chain due diligence dilemma.

Mining and mineral trade can support economic development and channel value towards some of the poorest communities on the planet.

Most resource-rich countries are CAHRAs. Mining is linked to scores of local threats which represent reputational and legal risk to buyers.

Procurement standards and regulation now exist to guide engagement in CAHRAs, universally incorporating the OECD Guidance as risk management framework.

Costs of due diligence cut into narrow operational margins and incentivise illegal trade. Due diligence expectations are vague and restricted in their scope, leading to persistence of risk.

Shared-value opportunityEngagement riskDue diligenceLimitations
The cycle that holds the sector in place.Real opportunity meets real risk. Standards exist to bridge them, but their cost and scope keep the risk in place. The cycle restarts unless the foundation underneath it changes.
Costly and inefficient mechanisms have turned due diligence into a hurdle.
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Chapter 02 · The traditional approach

Audits. Episodic. Expensive. Quickly stale.

For years the answer to the artisanal mining sector's due-diligence problem has been the same: send consultants to inspect, sample, certify. Each engagement one-off. Each report a snapshot. Each finding ages out before the next investment decision.

The cost falls on whoever commissions the audit. The data rarely benefits the next party who needs it. Three banks, two buyers and a regulator can spend on the same operator's audit, separately, and still each work from a partial picture.

2021Audit · Bank Asnapshotfreshness 100%2022Audit · Buyersnapshotfreshness 60%2023Audit · Regulatorsnapshotfreshness 35%2024Audit · Bank Bsnapshotfreshness 18%
Each audit ages out before the next decision.One-off engagements, paid for separately, kept private. The cost of compliance compounds. The insight does not.
Compounding cost. Compounding staleness. No compounding insight.
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Chapter 03 · KOTA's due diligence foundation

One structured record. Read three ways.

Investment, supply-chain and counterparty due diligence each demand their own format, their own evidence base, their own deadlines. KOTA does not replace any of them. It provides the structured operator record that all three can read.

Each regime keeps its own framework: IFC PS, the OECD Guidance, KYC and AML. Each reads the same source sections of the same record, scoped to what the operator has chosen to share. The operator compiles once. The cost of evidence stops compounding across the chain.

The dilemma was structural. So is the answer. One foundation. Three readers. No second form.

INVESTMENTDUE DILIGENCEIs the businessviable, governed andcreditworthy?IFC PS · credit · ESGSUPPLY CHAINDUE DILIGENCECan what we source bedefended?OECD DDG · EU CSDDD · schemesCOUNTERPARTYDUE DILIGENCECan we hold thisrelationship?KYC · AML · sanctionsKOTA · ONE FOUNDATION · READ THREE WAYSthe structured operator recordthree demands · three formats · three timelines · one foundation
Three regimes. One foundation that reads to all of them.Investment, supply-chain and counterparty due diligence each keep their own framework. They read the same structured operator record, the one piece of infrastructure the sector did not have.
Banking is live today. The wider compliance ecosystem will read the same record.
KOTA was imagined and sponsored by Trust Merchant Bank, the pioneer bank in digitising counterparty onboarding for the artisanal mining sector. It is maintained by Datastake as shared infrastructure, built for the segment rather than for any single institution.
Trust Merchant Bankdatastake