The London Metal Exchange’s drive for transparency is a regulatory change that is likely to have a transformative impact on metal supply chains. Those parties that can comply, and prove compliance may see rewards in the commodity prices in the transition to the new regime, which will encourage other parties to speed up compliance. But as outlined in this article, the regulation should not just benefit those parties that have the resources to ensure compliance.
A key part of Minehub’s mission is to enable smaller producers and supply chain actors to automate the ability to prove compliance. By moving the post-trade settlement of mineral transactions to the digital world of Minehub, users get more than an efficiency and security benefit – the provenance capability will help enable their customers to verify compliance with the LME guidelines.