How can Blockchain Technology Help Enhance the Efficiency of the Mining Industry?

Metals and Mining Review | Thursday, October 22, 2020

Blockchain has been digitally transforming every organization in every industry, and the metals and mining sector is no different.

FREMONT, CA: The mining and metals industry has been around for thousands of years now. The biggest question of the industries is how large companies can adopt innovative technologies to generate efficiencies, without giving rise to disruption—innovating to create efficiencies in large companies inclusive of those in the mining industry, which generally comes down to providing better access to accurate, real-time information. Mining companies need to manage approvals of documentation created in the exploration, resource/reserve estimation, mine design, and planning processes. Currently, the choice for sharing information comes down to two methods, first is using email to send documents and information directly or by utilizing a trusted third party acting as a data repository. Both ways are daunting, often insecure, and information is out of date as soon as it is sent.

Unlocking the Door to Data Sharing

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Blockchain technology mitigates various problems with traditional information-sharing technologies. Few companies have established a consortium of leading industry participants, including mining, technology, and retail banking companies, to help in building a blockchain platform to manage high-value assets throughout the supply chain, from the mine to the end buyer. The blockchain platform provides the consortium members with secure access to the real-time data relevant to them. The users have full control, security, and ownership of their own data, it resides on their server only under their security policies, and it is up to them to decide who can see and who cannot. Now they can smoothly share that data with their relevant counterparts, which enables all the parties to make better informed and often faster business decisions, which is a crucial element in driving operational efficiency.

What Does The Future Hold?

Blockchain technology itself is not that complex. The more significant challenge is to integrate the technology into multiple companies at the same time and then manage the governance of the platform as the consortium is built. The primary purpose is to build a smarter business through technology for the mining industry, which is achieved with innovation, efficiency, and minimal disruption.

See also: Top Metals and Mining Technology Solution Companies

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