Open Mineral, a Swiss-headquartered cloud-based exchange for the buying and selling of base metal concentrates, is planning to launch a blockchain consortium to streamline supply chains in the mineral industry.
Seeking to attract a membership of mining companies and financial institutions, the project, dubbed Minerac, has been established as a result of a partnership between Open Mineral and blockchain startup ConenSys, an Ethereum-based platform that has already set up consortiums within the oil industry and trade finance.
In a statement, Open Mineral’s chief executive, Boris Eykher, said of the existing mineral trading and supply chain that “logistics are complex, financing is difficult to acquire and the entire process is very paper heavy.
“Thus, the industry is primed for blockchain disruption to simplify the trading process, (and) increase efficiency and profitability.”
While not releasing specific details, Eykher added that certain mining firms have already signed up to the programme and discussions with other companies and financial institutions remain ongoing.
Open Mineral says Minerac’s blockchain solutions will be applicable to all stakeholders involved in the mineral trading value chain, including ship operators, financial institutions, surveying labs and warehouses.
“Minerac will offer a solution where all parties involved in the supply chain will benefit from digitisation, secure data collection, the seamless exchange of data and immutability of their records, made possible by the Ethereum platform,” said Joseph Lubin, co-founder of Ethereum and founder of ConsenSys.
Because the Minerac ledger will be shared, all parties involved in a transaction can be confident that all data is up-to-date, reducing errors an increasing overall transparency, while eliminating the potential for bad actors to take advantage of loose record keeping.
“Minerac will be structured within a private network and will offer the most sophisticated levels of encryption, ensuring complete privacy while also benefiting from the vast interconnectivity possibilities of the Ethereum ecosystem,” said Max Weiland, Minerac CEO.
On the ground, Minerac is set on addressing security issues by implementing processes requiring sealed bags and containers to be stamped with a unique, tamper-proof, identifying ID that will be logged on the Minerac ecosystem.
That ID would include information related to each parcel of ore and will be continually updated with location details and movements. Besides the security benefits, this ensures the commodity being purchased is from compliant and conflict-free regions.