In a complete walk away from traditional physical trading of minerals between producers, middlemen and buyers, the global mining industry is fully transiting into digital operations.
On Wednesday, global mining industry captains launched an online platform to connect miners with customers such as smelters and sign deals without the need of brokers.
The online marketplace, named Open Mineral, will let miners put up tenders for their concentrate directly to end-users.
According to details reaching Taarifa Business desk, this new digital platform will focus first on gold, silver, copper, zinc and lead, which represent a combined market worth about U$50 billion.
Other digitally traded minerals include; molybdenum, Zinc, Vanadium, Niobium, Nickel, Silicon, Titanium, Pig iron, copper, manganese, cobalt, chrome, carbon, Aluminum.
Smelters and miners could potentially boost returns by millions of dollars by dealing directly in the concentrate market, which is inefficient and opaque, chief executive Boris Eykher told journalists.
Open Mineral will also provide trade services such as transportation, surveying, assaying and insurance. The company is now accepting registrations and the marketplace will go live in August.
Since annual concentrate deals for the year are already set, the new online tool will target spot and 2018 contracts, which are due to be negotiated before the end of the year.
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