by Kathrine Moore
IBM [IBM-NYSE] and MineHub Technologies Inc. announced that they are collaborating to build an innovative application using blockchain technology for use in the mining industry with the stated goal of improving operational efficiencies, logistics and financing while reducing costs in the high-value mineral concentrates supply chain, “from mine to end buyer.”
Kutcho Copper Corp. [KC-TSXV; KCCFF-OTC] announced the launch of MineHub Technologies Inc. on July 12, 2018 and describes MineHub Technologies as an innovative, technology company focused on developing the next generation of cost saving applications for the mining and metals industry.
Vince Sorace, President and CEO of Kutcho Copper, stated, “MineHub presents a remarkable opportunity for Kutcho Copper shareholders to benefit from ownership in this groundbreaking technology which we believe can transform the mining industry.
Each syndicate member brings a unique perspective and knowledge that will assist in developing applications around solutions to real problems in the mining industry. Working together, MineHub will be exposed to the vast knowledge and experience of the syndicate that will drive application development to become adopted and useable by industry as a whole.”
Companies working with MineHub and IBM to develop the blockchain application include Kutcho Copper Corp., Goldcorp Inc. [G-TSX], ING Bank [ING-NYSE], Ocean Partners USA Inc. and Wheaton Precious Metals Corp. [WPM-TSX]. These companies represent key areas of the sup-ply chain from mining, streaming, trade and finance.
“MineHub is building a platform that has the potential to bring new levels of efficiency and trust to the mining industry,” says Manish Chawla, General Manager, Global Industrial Products, IBM.
The announcement states that the MineHub supply chain platform is built on the cloud-based IBM Blockchain Platform, powered by the Linux Foundation’s Hyperledger Fabric. MineHub plans to expand the collaboration to additional members across the mining industry to encourage innovation and new applications using the technology. IBM describes the process:
As each transaction occurs – and the parties agree to its details – it’s encoded into a block of digital data and uniquely signed or identified.
Each block is connected to the one before and after it – creating an irreversible, immutable chain.
Blocks are chained together, preventing any block from being altered or a block being inserted between two existing blocks.
“By digitizing the supply chain, we can increase the level of automation, reduce reliance on intermediaries and increase the speed at which goods are transferred from miners to end buyers. This creates the opportunity for transformative efficiencies and cost reductions throughout all aspects of operations,” said Vince Sorace, Founder and CEO of MineHub.
MineHub intends to expand the collaborative effort to include additional members in the mining industry “to encourage innovation and new applications using the technology”.
The announcement states that the $1.8 trillion, global mining and metals market’s use of conventional manual and paper based processes “suffers from inefficiencies” and is “less transparent”. Blockchain technology, initially used to track crypto currencies like Bitcoin, provides a shared ledger to create a single, real time view of transactions and data across the supply chain that can be seen by all permissioned participants.