MineHub has added London-based asset management company Kimura Capital to its growing consortium of industry participants.
The news comes just a few weeks after the technology platform to improve efficiency in trading operations and environmental and social governance (ESG) compliance in mining and metals supply chains confirmed it was ready for its first blockchain customers.
Kimura, a specialist in commodity trade finance with expertise in financing complex logistical operations, is a member of the Alternative Investment Management Association.
“Kimura’s experience in finance will provide another important source of financial liquidity within the mining and metals ecosystem,” MineHub said. “The partnership with MineHub will be instrumental in driving the innovation within the industry.”
The company continued: “With financial institutions adapting to a changing regulatory environment, the provision of alternative finance plays an increasingly important role in facilitating the availability of credit, not just for trade finance, but also project and institutional finance. Improving access to capital is therefore a core part of the MineHub value proposition and a key area of focus is on enabling an integrated mix of institutional and alternative finance actors to provide new financing structures.”
MineHub has been working on this technology platform in collaboration with IBM and leaders across the mining supply chain including ING Group, Wheaton Precious Metals, Ocean Partners USA, Kutcho Copper, Capstone Mining and White & Case LLP. It went live earlier this month, with the company saying initial usage and transactions with consortium members was anticipated to commence within the next few weeks.
Arnoud Star Busmann, CEO of MineHub, said having Kimura on board as a consortium member is very strategic for MineHub.
“Offering optionality in financing sources is core to our strategy and Kimura is a clear leader in this sector, both in size and diversity, as well as their commitment to innovation, technology and sustainability.”
He added: “Working with Kimura and their peers, in conjunction with commercial banks and other financial institutions, MineHub will improve the working capital options and costs for miners, traders and other users. Our solutions will serve both large corporates and SMEs within the market, whilst contributing to responsible supply chains by linking risk pricing to ESG profiles of minerals.”
Kristofer Tremaine, CEO and Founder of Kimura Capital, said digitisation is the future for the market.
“Kimura has developed its business by selecting best-in-class partners in order to strengthen its overall offering. We are delighted to begin a partnership with MineHub whom have outstanding potential and represent Kimura’s first cooperation in the digitisation of commodity trade flows.”
MineHub added: “Digitalisation, transparency and automation will help reduce operational and fraud risks, thereby lowering the barriers to entry for alternative financing sources. Increased operational efficiencies and automation of ESG compliance will enable alternative financing houses to serve more clients without increasing operations and overheads.”