FAQ

FAQ

REGISTRATION & FEES SECTION

What are the next steps for a company to participate in this marketplace?

Click on the  REGISTRATION tab in the upper menu of our website (https://openmineral.com/registration/) and complete the registration form. Directly upload the following document:

Registration documents for your company (certificate of incorporation or similar official document).

If you don’t have this document available at the moment you can send them later by email to register@openmineral.com

How many companies have registered on OME at this point? What is their Zinc, Lead, Copper production?
 

• Over 100 companies are currently registered on the platform, which account for almost  50% of the world’s freely traded zinc, copper, and lead production.

• Expect to have around 60% of the world’s zinc copper, and lead production registered in the platform by the end of 2018.

How much are the fees and how are they determined?
• OME charges a success-based fee. This $/dmt depends on the value/chemical composition of the material and the volume transacted.

• To get the fees please send us an email to support@openmineral.com providing us with the assays and volume applicable to your company and indicating if you’re selling or buying.

If we don’t need assistance with contract administration or execution, will our fees be lower than others who do?
The fees for tendering material versus handling the contract administration are separate and thus would be lower for you if you only use the former.
Who covers the associated costs if a business concluded through the platform is not fully back to back? How much are the costs?

• Open Mineral recommends selling at least FOB basis to receive global bids and get the best commercial terms

• If the seller does not have the ability to take the material to FOB, he can directly contract a service provider via OME

FUNCTIONALITIES SECTION

Once Seller finds a new Buyer, what would prevent us from bypassing OM on future business?

The spot market is extremely dynamic, and talking to the same player for several months will not guarantee that they will still be the ones able to give you the most favorable terms. Open Mineral helps companies access the spot market more frequently and without the administrative hassle of traditional tenders.

What are the advantages of selling on Open Mineral?

• OME only charges a success-based fee against physical delivery.

• The greater the number of participants, the greater access to better commercial terms

• No need to buy from middlemen

• No more labor and time intensive tendering

• Manage the traditional tendering process in a more efficient manner

• Directly connect you to a larger number of smelters around the world to which you can offer your material.

• Eliminate back-and-forth emailing and countless telephone calls

• Interactive calculator that automatically gives bottom-line revenue comparison per each of the offers you receive

• Expedite the tendering process by clearly stating the rules of the game up front

• Significant difference between annual benchmark and spot market causing more value from your transactions

RISK SECTION

How will Open Mineral handle counter-party risk?
OME performs extensive KYC checks and only allows reputable companies to join the platform. It has rejected around 60% of applicants, as OME has an interest in preserving a secure environment.

It requires every single transaction from smelters to be backed by a bank guarantee i.e. Letter of Credit, opened prior to any shipment taking place. In some instances, OME can hold title between FOB and CIF to directly provide trade finance.

Companies can create a blacklist to prevent bids/offers from any specific company they do not wish to deal with.

After the transaction between the buyer and the seller is reached, what measures are there on the platform to prevent the contract break?

All the members of the business team have many years of experience in the mining and smelting industry. OME makes a point of directly or indirectly knowing all the companies that register.

Additionally, OME performs a very diligent KYC check through Thomson Reuter’s World Check on every company and person that registers

Members can rank other companies based on their performance i.e. breaking a contract would tarnish their reputation. Moreover, OME reserves the right to ban companies that breach protocol.

Am I able to post annual/long-term tenders on OME?

Yes; it is completely possible for long-term contracts to be negotiated through OME.

EXECUTION & ANALYTICS SECTION

How is WSMD determined for Chinese sales?
  Weighting, sampling, and moisture determination is fully compliant with Chinese regulations (determined by CIQ/CCIC if done at the port of discharge). Companies can choose to finalize at load port if agreed between both counterparties.
Will you allow pre-payments/advance payments in your platforms? Given local regulations, state-owned Chinese companies cannot disburse via advance payments.

OME will not allow advance payments on our platform. Payments to China will be as is customary, via bank guarantee or L/C.

Additionally, OME performs a very diligent KYC check through Thomson Reuter’s World Check on every company and person that registers

Members can rank other companies based on their performance i.e. breaking a contract would tarnish their reputation. Moreover, OME reserves the right to ban companies that breach protocol.

Will access to Analytics require an additional subscription cost to be paid by the users for marketing reports/analytics?
No additional subscription is required for access to market analytics. This information is available to all registered companies.

OME has partnered with Thomson Reuters and has access to their extensive databases (such as freight, real time prices, forward curves, supply/demand dynamics).

Will our data be kept confidential?
OME will not publish anything that might compromise specific commercial terms attained by customers

OME will only publish aggregated data like average TCs and RCs per type of concentrates i.e. Pb concentrates with high and low contained Ag.