No More Monkey Business: OpenMineral Is Bringing Mining out of the Stone Age and onto the Blockchain

As we begin to enter into Industry 4.0, we are leaving old technology, business practices, and markets behind. The digital age has allowed the commodities industry to use the most complex machinery ever made, handling the toughest minerals in the toughest conditions. However, many of the industry’s commercial aspects remain stuck in the Stone Age due to convoluted, archaic systems which feature middlemen and a general lack of transparency.

Smelting Out The Issues

These archaic practices are a hindrance to both buyers and sellers in the industry, as true pricing is sometimes hard to determine, while commodity traders (middlemen) are making increasingly large profits thanks to this lack of transparency. That’s where something like Open Mineral Exchange (OME) comes into play. OME is an online marketplace that connects buyers and sellers of physical commodities, allowing miners and smelters to competitively sell and source metal concentrates directly, without the intermediaries. This keeps pricing true and opens up entirely new conversations which can be beneficial to the industry as a whole.

With over 3,800 known minerals on Earth, there is still a lot we have to discover and uncover about them. Their properties and potential value are still up in the air, but what we do know is that commodities like zinc, lead, copper, gold, and silver are valuable right here, right now. OME gives those who understand the market a place to discuss these minerals and their value, without the influence of trading fees and markups.

Leveling The Playing Field

It’s time to bring vendors, buyers, and sellers together on a field that is equal for all. Open Mineral Exchange brings together sellers and buyers, as well as mining and metals companies, allowing them to transact directly and securely, without intermediaries, to improve their profitability.

“By dealing directly, mines and smelters can tender and source metal concentrates through the exchange without an intermediary, increasing their profitability and efficiency of execution,” said Ilya Chernilovskiy, Co-Founder and COO of Open Mineral Exchange.

Most importantly, increasing the speed at which transactions are done is beneficial to all, as assay certification, bills of lading, and letters of credit are all digitized on the platform. This not only saves valuable time, but it also allows for an increased level of transparency, thanks to the blockchain. All parties can track contract execution, past sales, and the physical movements of materials to get a better understanding of the process, all while staying on top of the commodity movements.

Streamlining Revenue Streams

It’s time for companies in industries like energy, transportation, and healthcare to embrace fast-moving change, all the while providing a multitude of low-cost tech initiatives. It’s a big world out there, and industries need to adapt to the growing world of blockchain, transparency, and accessibility. Focusing on these areas will not only improve the process and experience for those involved, but it should also increase and expand revenue streams thanks to a streamlined process and open dialogue between those involved.

According to the Metals & Mining Global Industry Guide 2017-2021, the global metals and mining industry had a total revenue of $1.8 billion in 2016. The market size of the free trade of base metal concentrates exceeds $80 billion. It’s time for us to leave the caves in which we first started and find new ways to explore and exchange minerals. Blockchain could very well be the answer.