Blockchain technology offers communication, documentation and logistics in one place. (Image: MineHub)
VANCOUVER – MineHub Technologies and IBM announced on Jan. 16 a collaboration to use blockchain technology to help improve operational efficiencies, logistics and financing and reduce costs in the high value mineral concentrates supply chain – from mine to end buyer.
Goldcorp, ING Bank, Kutcho Copper Corp., Ocean Partners USA, and Wheaton Precious Metals are working with mining technology company MineHub to build the new mining supply chain solution on top of the IBM blockchain platform.
The $1.8 trillion global mining and metals market has traditionally suffered from inefficiencies due to manual, paper-based processes and a lack of transparency between supply chain participants. Blockchain technology helps address this by providing a shared ledger to create a single, real time view of transactions and data across the supply chain that can be seen by all permissioned participants. Each of the participating companies represent key areas of the supply chain from mining, streaming, trade and finance.
“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,” said Vince Sorace, founder and CEO of MineHub. “This is a significant advancement for an industry looking to integrate and use data in ways not previously possible.”
The first use case will be built on the MineHub platform and will manage concentrate from Goldcorp’s Penasquito mine in Mexico throughout its path to market. When ore is mined, the mining company will upload data, including sustainability and ethical practices, allowing independent verification from regulators to end users as required. When materials are loaded for transport, the MineHub platform can record each transaction and allow permissioned parties to view and reconcile information throughout its journey. Smart contracts for supply chain processes such as trade finance, streaming and royalty contracts will be used by companies such as Wheaton Precious Metals and other institutions who provide credit facilities such as ING Bank in connection with the Penasquito mine.
The MineHub supply chain platform is built on the cloud-based IBM blockchain platform, powered by the Linux Foundation’s Hyperledger Fabric. MineHub plans to expand the collaboration to additional members across the mining industry to encourage innovation and new applications using the technology.
MineHub and IBM plan to work together to collaborate on new ways to scale and expand the platform, identify new use cases, and incorporate innovative technologies into the platform in the future.
Visit www.MineHub.com to learn how blockchain technology can help lower costs.