Physical commodities trading platform, Open Mineral, with seed funding totaling $2.25 million, is set to disrupt the physical commodities trading market with an online marketplace.
The commodity trading industry is centuries old and moves raw materials worth hundreds of billions of dollars from producers to consumers around the world.
Despite the size of the physical commodities market, it often lacks the efficiency and transparency of many other titan industries.
Commodity traders are typically required when trading physical goods, and they are making tens of billions in net profits by acting as the middle-men between producers and consumers.
Open Mineral is on track to increase the efficiency of the market for base and precious metal raw materials.
Its digital platform, Open Mineral Exchange, brings together sellers and buyers, mining and metals companies, allowing them to transact directly and securely, without intermediaries, to improve their profitability.
On top of that Open Mineral digitizes and streamlines the complicated and paper-heavy process.
The platform currently focuses on zinc, lead, copper, gold and silver concentrate markets, but could expand into other concentrates in the future.
In addition to global concentrate transactions, Open Mineral also offers its members access to valuable services supporting trade execution, such as freight, quality control, financing, and insurance.
The platform offers tools essential for streamlining the process such as instant messaging, electronic document exchange, interactive P&L calculators, and more.
The cloud-based exchange ensures that parties have the most up-to-date information to monitor transactions and information flow.
To date, Open Mineral has investments totalling $2.25 million. Notable investments have come from Goldcorp (TSX:G), Canadian gold mining company, and Igor Kim of Xploration Capital.
David Stephens VP, Corporate Development & Marketing Goldcorp states, “Much of how we conduct business in the physical commodities market has stayed the same for decades.
“Open Mineral offers an opportunity to change that by bringing buyers and sellers together on a digital platform, making the process much easier and more efficient.”
Open Mineral is a Swiss-based company, founded by Harvard MBAs, Boris Eykher and Ilya Chernilovskiy, both with prior experience at Glencore, the world’s largest physical commodity trading house.
“We are building an ecosystem where all participants have equal access to market information,” says Ilya Chernilovskiy, Open Mineral co-founder and COO.
“You know all the options and develop best commercial strategies based on reliable data and first-hand knowledge of the market. You simply make better, more profitable decisions for your company.”
Open Mineral became the first startup to join Thomson Reuters Incubator, which hosts early-stage entrepreneurs building next-generation products in big data, advanced analytics, distributed ledgers, artificial intelligence, and other transformational technologies.
“Thomson Reuters partners with cutting-edge startups that align with our customers’ needs, helping to provide insights on the newest trends impacting professional markets,” states Barry Dooney, Strategy and Operations Manager for Thomson Reuters Incubator.
“We are very excited by Open Mineral’s proposition, driving digital innovation and transparency in the commodity trading market.”