Mining3 is a world-leading research organisation developing and delivering transformational technology that improves the productivity, sustainability, and safety of the mining industry. With the help of RMIT students, they built cutting-edge trading software using blockchain technology.
RMIT students lent their expertise to research and development group Mining3, creating a new industry software platform using blockchain technology that allows miners to trade on the future value of their unprocessed materials.
The prototype software supports the trading of derivatives, which are financial contractual agreements wherein buyers agree to process an asset (unprocessed ore) on a specific date and at a set price. The software allows the future value of unprocessed materials to be harnessed in the present, giving miners immediate cash flow and royalties from their ore stockpiles.
“Mining3 has a history of working effectively and collaboratively with a broad range of innovators. Working with the RMIT team and supporting their efforts has proven to be a very positive experience,” said Susan Grandone, Chief Operating Officer at Mining3.
In mining, ore that is unprofitable to process or extract at current market rates is stockpiled. However, fluctuations in commodity pricing and advances in technology often mean that this ore becomes profitable to process in future.
The students joined an interdisciplinary team to develop a software platform allowing miners to trade on the future value of their unprocessed materials. The interdisciplinary team, led by alumnus and Software Engineer Julian Wise, consisted of Mining3 senior mining researchers and RMIT Software Engineering and IT students. The researchers provided mining industry context and knowledge on mineral price calculations, while the students crafted the pricing algorithm, blockchain ecosystem and website interface.
Students involved received invaluable industry experience, seeing the project through from the initial development stage to completion of the software.
Presented at the 3rd Symposium of Distributed Ledger Technology in November 2018, the software harnesses financial algorithms alongside transparent blockchain ‘smart contracts’ to enable high-level trading of derivatives.
“This application simply harnesses that future value of unprocessed materials today to give miners immediate cash flow and royalties from their stockpiles, whilst enabling market traders to profit on future price increases. But while people are already trading on the future value of processed metals and minerals, no-one has applied the same pricing mechanisms and exchange styles higher up the supply chain to unprocessed minerals,” said Wise.
RMIT’s researchers are committed to supporting our partners to create and capture value through tailored approaches for small business through to research programs in consortiums.
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Acknowledgement of country
RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business - Artwork 'Luwaytini' by Mark Cleaver, Palawa.
Acknowledgement of country
RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business.
