Swiss-based Open Mineral have announced plans for a blockchain-based mineral trading consortium. The firm, which is already a leading cloud-based trading solution, now wants to go on blockchain to make the process more efficient, but also to redouble their efforts to ensure ethical sourcing and trading. In a statement this week, Boris Eykher, the CEO of Open Mineral, said:
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.
In order to facilitate the shift to blockchain, Open Mineral have teamed up with Joseph Lubin-owned ConsenSys. Together, they are creating Minerac, the new blockchain-based trading mechanism that Open Mineral and its fellow consortium members will use. ConsenSys bring a wealth of experience in blockchain consortiums and trade platforms, having already set up similar in the oil industry.
Of course, the main focus in the minerals trading industry today is ensuring provenance; namely, that all sourced minerals come from conflict-free regions. Through a blockchain-based supply chain, this can be ensured. And Minerac are looking at tamper-proof sealing to packaging to help the process, with all data recorded on their new blockchain.
Open Mineral have been running for a year, with the founder members mostly coming from Glencore – the metals and mining giant, with an annual revenue of over $200 billion.