Blockchain Consortium for minerals trading to be built by Open Mineral
Swiss-based Open Mineral is determined to build a blockchain consortium of mining companies and financial institutions in order to create a blockchain system for logistics and minerals trading. Open Mineral is an online metal concentrates exchange.
The exchange said that in order to establish Minerac, it has joined hands with U.S. blockchain start-up ConsenSys. Minerac is being established to make supply chains and minerals trading more efficient. ConsenSys has already set up consortiums for the oil industry and trade finance. It uses the Ethereum blockchain platform.
Some mining companies have already signed up to the blockchain consortium. Minerac aims to connect the minerals supply chain from mining to shipping, surveying, warehousing and financing.
Financing is difficult to acquire and logistics are complex to handle so the entire process is very paper heavy. The industry is aimed at simplifying the trading process, increasing efficiency and profitability and is primed for blockchain disruption.
Boris Eykher, Open Mineral Chief Executive, said that the newly-formed consortium has already attracted some mining organizations and is carrying on negotiations with other miners and financial institutions, though he did not name them.
Minerac aims to address security and sustainability problems in the mineral trade by adopting a procedure wherein sealed containers and bags would be assigned an ID that is recorded in the Minerac system. Unique information pertaining to each individual parcel would be updated with delivery movement and location details. In this way, Minerac hopes to ensure the security of high-value minerals and help validate that commodities are from conflict-free regions.
Blockchain has been widely integrated into logistics and supply chain in various fields. A few days ago, the U.S. Patent and Trademark Office published a blockchain-related patent application from Walmart for a “secure” delivery management system. Minerac will also allow stakeholders to exchange critical trade documents securely.
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