The mining and metals market has long suffered the inefficiencies of manual and paper-based processes that made it impossible for transparency in the sector. The need for transparency in the sector, as well as stricter ESG compliance regulations, has pushed the sector towards the adoption of blockchain solutions to address these challenges. Blockchain technology brings with its transparency, reliability, scalability, and traceability to mining supply chains allowing these companies to track the metals and mining supply chains for transparency in carbon emissions, water use, human rights abuses, and finances. Among the companies turning to blockchain solutions are MineHub (TSXV:MHUB) (OTCQB:MHUBF), FOBI AI (TSXV:FOBI) (OTCQB:FOBIF), Tesla Motors (NASDAQ:TSLA), Glencore PLC (OTCPK:GLNCY), and Aspen Technology (AspenTech) (NASDAQ:AZPN).
MineHub (TSXV:MHUB) (OTCQB:MHUBF) is an open, enterprise-grade platform for digital trade and the first publicly-traded pure play end-to-end digital supply chain solution for the mining and metals industry. The company developed its supply chain solution in collaboration with IBM to streamline logistics, operations, and financing to reduce costs and provide greater efficiency, security and transparency compared to the current paper-based and manual processes.
On November 8, MineHub announced the launch of its Trade Finance application, which is integrated into its core platform as an additional offering to its users. The application will be the first in a series of network applications the company will be launching in the coming months.
MineHub Trade Finance is a network application that brings visibility, security and efficiency to financiers of commodity transactions, while digitizing administration and communication between lenders and financiers.
“Having had multiple years of experience with the complexity and key risk drivers of commodity trade finance made this application the highest priority solution on our roadmap,” said Arnoud Star Busmann, CEO at MineHub and formerly of ING Bank, the world’s largest commodity bank. “The value proposition is very clear. Blockchain technology, and solutions like MineHub Trade Finance are likely to forever change the ways of working in the commodity trade finance industry with a key goal to unlock access to essential working capital critical for the world economy”.
MineHub also recently closed a $10 million private placement, which it intends to use for the development of its end-to-end digital supply chain solution.
The MineHub platform has already helped some of the world’s largest mining and steel companies BHP Group, Vale and China Baowu complete iron ore transactions through its blockchain-based platform. Most recently, Vale and China Baowu completed the first transaction using the company’s iron ore blockchain-based solution for 318,000 tons of Caraga from Brazil to China Sifan. This transaction is the first cross-platform real-time transaction completed successfully following the collaboration between MineHub and essDOCS.
