Tag Archives: MineHub

MineHub adds BHP, China Baowu to blockchain-based supply chain platform

BHP and China Baowu have completed their first iron ore trade on MineHub Technologies’ blockchain-based platform, according to the Vancouver-based digital supply chain company.

This is the first of a series of transactions with various industry partners, guiding the next evolution of functionality on the MineHub platform that will ultimately provide commodity supply chains with a fully digital end-to-end fulfilment process, MineHub said. “It also reflects MineHub’s development approach – hands-on collaboration and continuous validation with industry – to ensure that the platform delivers on the value and user experience expectations.”

The MineHub platform is built on the IBM Blockchain platform using the open-source Hyperledger Fabric standards. MineHub allows its customers to benefit from several innovations, according to the company, with the parties involved in selling, buying, delivering and paying for a cargo of minerals now able to collaborate securely in real-time, “working in an integrated cross-company workflow, sharing electronic information rather than couriering or emailing paper documents that are subject to interception, fraud and cyber threats”, MineHub said.

Arnoud Star Busmann, CEO of MineHub, said working with the world’s biggest miner and one of the world’s largest steel producers on “designing the digital future of critical supply chains” like iron ore is incredibly exciting.

“This series of transactions, each focusing on different aspects of the post-trade process, will allow MineHub to incrementally expand the platform’s functionality and scalability into the iron ore and other mineral commodity markets, incorporating real-life user experience,” he added.

MineHub is also developing and validating digital solutions in complementary settings and in collaboration with other industry partners, it said, adding that work was underway, for instance, in base metals concentrates, structured finance and emissions tracking.

Star Busmann continued: “We will incorporate these learnings into the next MineHub release, planned for Q4 (December quarter) 2020, which will start to provide a solution to the increasingly urgent need for industry-wide digitalisation, by boosting both safety, transparency and resilience of critical supply chains. Especially as current pandemic events and fraud cases in the commodity trading industry are causing a step change in the adoption of digital solutions.”

MineHub says its blockchain-based platform helps the parties in a mineral transaction to virtually integrate their trade operations processes like contracting, logistics, specifications and financing services. This streamlines communication channels and also provides the transaction participants with security and certainty via a reliable, real-time single source of truth.

“The underlying blockchain technology ensures that each party can control the privacy, integrity and geographical residence of their data, whilst allowing trading and financing partners to use or verify the integrity of shared information,” MineHub says.

MineHub adds commodity trade finance expert to blockchain platform

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.”

MineHub Platform ready for first blockchain transactions

MineHub Technologies says it has completed development of its technology platform to improve efficiency in trading operations and environmental and social governance (ESG) compliance in mining and metals supply chains.

The company has been working on this project 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.

The MineHub Platform is now live, with initial usage and transactions with consortium members anticipated to commence within the next few weeks as well as the addition of new industry participants to the platform.

“MineHub’s first release offers comprehensive functionality that enables miners to capture mineral production and digital contracts with buyers, streamline the post-trade operations (including document flow), financing and logistics,” MineHub said.

The platform is aimed at a wide variety of company types and sizes including SME and large corporate miners, trading houses, financial institutions, alternative financiers, streamers, logistics companies and assayers, the company said. It can provide benefits across industry verticals including mineral concentrates, bulk metal and fertiliser, according to MineHub.

The company continued: “The $1.8 trillion global mining and metals market has traditionally suffered from inefficiencies due to manual, paper-based processes and a lack of transparency among supply chain participants. By digitising the supply chain, increasing levels of automation and providing greater traceability, MineHub Platform users are expected to be able to streamline their operations, improve profit margins and contribute to sustainable supply chains and responsible sourcing.”

Arnoud Star Busmann, CEO of MineHub, said delivering the MineHub platform on schedule would not have been possible without the support from all its partners and IBM.

“We are excited about having the first trades going through the platform in the coming weeks and from there start demonstrating the benefits of the solution, in particular the cost savings from streamlining operations, improving access to finance and enabling mineral provenance.”

The MineHub platform is built on the IBM Blockchain platform using the open-source Hyperledger Fabric standards. MineHub allows its customers to benefit from several innovations, according to the company, with the parties involved in selling, buying, delivering and paying for a cargo of minerals now able to collaborate securely in real-time, “working in an integrated cross-company workflow, sharing electronic information rather than couriering or emailing paper documents that are subject to interception, fraud and cyber threats”, MineHub said.

By providing an immutable record of transactions, MineHub is already helping its members streamline operations, improve key process efficiencies, and bring a new level of trust and transparency, according to Manish Chawla, General Managing Director, IBM Energy & Natural Resources.

“We anticipate considerable reduction in disputes on assays and logistics events by automating the capture of mineral provenance data,” he said. “This is an exciting advancement that will pave the way for traceability reporting as well.”

MineHub is expected to lead to transformative efficiencies, the company says, by:

  • Streamlining operations, automating coordination and bringing trust and transparency to the process;
  • Minimising the risk of document loss or delays;
  •  Integrating the banks and lenders more directly with their customers’ operations;
  • Helping to standardise, structure and digitalise marketing and trading administration, including contracts, trade confirmations, assays, letters of credit, logistics and shipping documents;
  • Reducing disputes on assays and logistics events;
  • Increased security through strong authentication of users and document origination, and reducing opportunities for bad actors;
  • Automating reporting for treasury, lenders, royalty-holders and streamers, with real-time visibility of the production output and receivables; and
  • Automating the capture of mineral provenance data, paving the way for traceability reporting and improving ESG compliance.