The Growth Of New Blockchain Usage In Mining Operations
Blockchain is improving mining operations.
The global mining industry is about to enter into a new period of technological growth. Implementation of blockchain technology in new and innovative ways will help to improve operations and safety methodologies which have not been possible before. It is interesting to see that a technology initially developed for cryptocurrencies will soon be saving lives and streamlining processes in some of the world’s most challenging mining environments.
As the Enegra Group has moved its ownership to a fully tokenized structure on the blockchain it is relevant for us to follow the development of blockchain-based technologies across the mining sector. As the industry adopts further blockchain-based systems we will be delving into these implementations and elaborating on current blockchain uses in mining through future articles.
One must change one’s tactics every ten years if one wishes to maintain one’s superiority. — Napoleon Bonaparte
The blockchain appeared initially to provide an immutable record of transactions for Bitcoin. Now that immutability is providing opportunities for improving and enhancing mining operations on several levels. Improved mine operations have the capacity to reduce the environmental impacts of operations, improve efficiency and enhance safety standards for miners and communities around the world.
Safety is a key aspect that blockchain can impact in global mining operations. As resources on mining sites become possible to register on blockchains, the opportunities for mistakes and human error can be reduced. In an industry that utilises heavy machinery and dangerous processes, any improvement in safety is welcome. The ability to track and record the movement of machinery and people across a mine site is vital for improving safety. Those benefits are greatly enhanced by an immutable record of tracking which can be shared across all the onsite resources creating a reduction in the opportunities for accidents. In the event of mishaps, the blockchain can be analysed to identify where and when mistakes were made so that they can be eliminated in future operations.
Mines are large operations, encompassing numerous aspects which require significant resources to keep working harmoniously. The blockchain is bringing opportunities for mines to streamline and manage their resources, which can benefit both profitability and the environment.
Supply chain logistics and maintenance functions require coordination and management between multiple parties. These requirements are enhanced by the accountability and transparency that the blockchain can provide. Managing a resource chain across countries or territories is easier when all the relevant personnel involved in the process can instantly understand the status of goods and any blockages in the chain of supply. Likewise, the maintenance of mission-critical parts is improved by blockchain’s accuracy and accountability, greatly enhancing maintenance processes.
Compliance is a further opportunity for the blockchain to contribute to mining operations. As the global awareness of ethical business operations grows, consumers are pressuring corporations to enact sustainable sourcing policies. Consumers are unwilling to purchase products that are the result of environmental degradation or child labour. Consumer pressure is driving some of the largest global corporations to structure ethical sourcing policies and ensure they are enforced.
Blockchain technologies are enabling both corporations and consumers to track the movement of goods and materials from their source into the hands of consumers. Blockchain’s cryptographically secured transactions can be listed on an open ledger allowing all parties in an economy to observe the development of goods from the source, through production and into consumer distribution.
Eventually, entire supply chains will be open to inspection by the public and mining is no different. Although still in the future the first movers to adopt these ethical operations will have a significant market advantage. Given the choice, consumers will choose ethically produced goods and services that they can verify over more opaque products. This will drive further adoption of blockchain-based accountability in the industry.
What is clear is that blockchain technology has the opportunity to impact numerous operations in the mining industry. These impacts should improve safety, enhance operations and supply chains. This should lead to a reduction in accidents, an improvement in operational processes and reduced environmental impacts. It is always amazing when a single technology can benefit all aspects of operations and we shall be looking at these benefits in greater detail in future posts.
Enegra Group Ltd (LL15959) is a commodity trading company focused on resources in Southeast Asia. Equity in Enegra has been tokenised via the EGX security token. For enquires related to the purchase of EGX please contact support@enegragroup.com.
