In an effort to bring new solutions to global mining and the metals supply chain, IBM and MineHub Technologies have announced a collaboration.
The two partners will use blockchain technology to improve logistics, financing, operational efficiencies, and reduce costs in the mineral concentrates supply chain from the mine to the end buyer.
MineHub Technologies will also be working closely with ING Bank, Goldcorp, Ocean Partners, Kutcho Copper, and Wheaton Precious Metals to build the solution on top of the IBM Blockchain platform.
The global mining and metals market is estimated to be worth $1.8 trillion. The market has traditionally suffered several insufficiencies owing to manual and paper-based processes. The supply chain also faces issues from a lack of transparency.
However, with the help of a distributed and shared ledger, the permissioned participants of the supply chain can view all transactions across the chain.
The solution will be a permissioned ledger, meaning only those parties authorized to handle a transaction will be able to view it.
Digitizing the Metals and Mining Market
Vince Sorace, MineHub founder, and CEO noted:
“By digitizing the supply chain, we can increase the level of automation, reduce reliance on intermediaries and increase the speed at which goods are transferred from miners to end buyers. This creates the opportunity for transformative efficiencies and cost reductions throughout all aspects of operations.”
He noted that this solution would be a major advancement in the industry as it works to use and integrate data in new ways.
The first use case of the blockchain solution will be the management of concentrate from the Goldcorp’s Penasquito Mine right through its path to market. The solution will be built on the MineHub platform.
The mining company will upload data, including on ethical practices and sustainability, to the blockchain, which will be verified independently by regulators and end users.
According to Arnout van Heukelem, global head of metals and mining at ING, their clients face several operational challenges.
“Blockchain has the potential to reduce or even overcome these…I am excited to be working together with MineHub and help our clients in metals and mining lower costs, increase transparency and contribute to sustainable production and trading.”