MineHub Technologies and IBM Use Blockchain for Mining Supply Chain Solution
MineHub Technologies and IBM have announced 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.
Goldcorp, ING, Kutcho Copper Corp., Ocean Partners USA Inc. and Wheaton Precious Metals Corp. are working with mining technology company MineHub to build the mining supply chain solution on top of the IBM Blockchain Platform.
The 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.
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.