Open Mineral logo in blue on blueish background of earth and rocks

ConsenSys and Open Mineral Unveil a Blockchain Platform in the Mineral Supply Chain

Jul 10, 2018, 1:12PM
1 min, 52 sec READ

The technology will help trace mining products using a unique ID data having their point of origin, besides allowing compliance with local laws

Open Mineral, the Swiss-based online mineral and metal exchange has announced plans to unveil a blockchain-based platform to serve a conglomerate of mining companies and financial institutions.

According to an official statement, the platform christened Minerac is a partnership with the U.S. based start-up ConsenSys Inc, which uses the Ethereum blockchain to provide decentralized information services. Open Mineral will use Minerac to streamline the mineral supply chain from surveying, financing, mining, shipping and warehousing, making it faster and less prone to error. Appreciating that blockchain technology provides a tamper-proof system, Open Mineral Chief Executive Boris Eykher said,

Logistics are complex, financing is difficult to acquire and the entire process is very paper-heavy, the industry is primed for blockchain disruption to simplify the trading process and increase efficiency and profitability.

ConsenSys is a blockchain technology company that uses the Ethereum network and focusses on empowering startups and individuals with decentralized services through Ethereum. The company is already working with a consortium in the oil industry, providing a good incentive for similar platforms in the mining industry. ConsenSys founder Joseph Lubin said of the partnership,

We are dedicated to building the Ethereum ecosystem and committed to supporting new use cases across all industries […] Minerac will offer a solution where all parties involved in the supply chain will benefit from digitization, secure data collection, the seamless exchange of data and immutability of their records, made possible by the Ethereum platform.

Open Mineral is a Swiss-based startup created by former Glencore traders with the aim of revolutionizing commodity trading by offering an intuitive interface to tender, negotiate and execute contracts, with an annual revenue of $200 billion. The exchange intends to use blockchain to eliminate middlemen using analytical tools to streamline contract negotiation and execution.

The blockchain will be primarily used for tokenizing minerals and smart contracts where Minerac will allow stakeholders to exchange critical trade information such as letters of credit and bills of landing securely. Open Mineral will stamp sealed bags with a traceable tamper-proof identification model that will ensure they come from compliant and conflict-free regions. 

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.