This industry is highly capitalized, regulated and characterized by a complex supply chain. The implementation of blockchain technology will drive increased trust, reduced costs, improved productivity in mining, data interpreting and storing records for the industry.
One of the major industries globally, the mining business is still inefficient in tracking conflict materials which can be linked to obtaining the materials from selected African nations. To secure default sourcing with ethical sourcing, manufacturers have to disclose the source of the mineral. Integration of blockchain will store the complete data of every set of hands that have passed through, between the moment it is extracted to when it lands in the hands of the final owner.
Determination of a gem’s provenance will be the ideal goal of implementing blockchain in this sector. From mining to displaying the gem at a trusted retailer, the journey of the valuable stone has many opportunities to be exchanged for something of a different provenance. Blockchain can verify and guarantee the legitimacy of a gemstone/diamond in the production process.
Integration and implementation of blockchain will automate the acquisition and transfer of ore between suppliers, producers, traders & the main company. Since ore is supplied from various sources and owners, blockchain will help in declaring & providing visibility for all the acceptance making the owners have the accountability over their port operations.
To reduce freight costs and save process time, blockchain can bring more flexibility and automate the cargo hiring process. With the help of a distributed ledger system, a ship can be hired & automatically register the contract, reducing the lead time from days to minutes.
Blockchain implementation can automate and enforce reconciliation of the amount produced and sent to processing plants such that each value is registered in the ledger book automatically.
Speeding up the transactions and increasing transparency across the supply chain to remove the intermediaries can be the use of blockchain to simplify cross-border payments and regulatory compliance, on centralized payment systems operated by banks.
Blockchain can enable trading market places for ore or energy where regulators, miners and their customers can trade directly without the necessary involvement of intermediaries. The technology can also transform the identification trading and management of ore bodies. The record on blockchain will enable everyone to trace ownership and the geographic location of the ore.