Today enterprise blockchain firm MineHub listed on Canada’s TSX Venture exchange following a CAD 10 million ($7.9m) fundraising and currently has a market cap of CAD 51 million ($40m).
In 2020 BHP and China Baowu executed an iron ore trade on Minehub’s blockchain platform, which is used for supply chain workflow. Other partners include Wheaton Precious Metals, ING Bank, Vale, Kimura Capital, and IBM.
The founding CEO, Arnoud Star Busmann, spent nine years at ING as innovation lead for commodities. MineHub started by focusing on digital transformation to address inefficiencies. Based on KPMG data, the company estimates that 5% – 10% of the value of goods, $150 billion annually, is lost on multi-party and paper-based processes in the metals and minerals sector.
Additionally, in the last year or two, sustainability issues have attracted more attention, and mining is a sector that is particularly impacted.
“With a strong balance sheet, industry experts, and ample opportunities for growth, we have a solid foundation to execute our strategy to further build and grow MineHub into the preeminent enterprise platform for commodity supply chains,” said Vince Sorace, Chairman at MineHub.
“This industry is ripe for technological advancements and we have proven change is possible with a powerful suite of tools to aid in this digital transformation, from real time data to trade finance and ESG attributes such as carbon emissions tracking.”
The announcement highlights how the auto industry is likely to have to comply with emission limits in some markets, which means the traceability of ESG attributes for metals and minerals will be a requirement.
However, MineHub has far more competition when it comes to ESG blockchain solutions. For example, UK-based Circulor is already working with multiple vehicle manufacturers on these fronts, including Volvo, Jaguar Land Rover and Mercedes. MineHub’s partner IBM also has the Responsible Sourcing Blockchain Network that includes Ford, Volkswagen, Fiat Chrysler and Volvo.
Some of the mining firms are getting in on the act. Glencore, China Molybdenum Co (CMOC) and Eurasian Resources Group (ERG) developed Re|Source in conjunction with tech partner Kryha.
Meanwhile, Minehub is targeting Asia with a business development presence in China, Singapore and Japan. It recently partnered with blockchain trade finance platform Contour based in Singapore, where ING was a co-founder.