NSTITUTE OF MANAGEMENT STUDIES GHAZIABAD

PROJECT REPORT

ON

“How mining sector is using blockchain technology in inventory

management”

Submitted by:

Nupur Kumari (BM-022183)

Sonali sahu (BM-022

Piyush Mishra (BM-022183)

Varun Gupta (BM-0221

Jhanvi Nauriyal (BM-022

Gautam Singh (BM-022

Section- c

Submitted to: Dr. Rashi singhal

 ACKNOWLEDGEMENT

I would like to express my deep and sincere gratitude to Dr. Rashi Singal who
helped us during the completion of this project report.

Though at the onset of any ambitious project one always encounters certain
difficulties in the beginning, however, overcoming those difficulties of the
project as well as making it a success greatly depends on the encouragement,
inspiration and help given by the faculty.

We would also like to thank others people too for their cooperative attitude
which made us understand the different perspective of a technique.

We also hereby like to thanks Dr. Radhika Malhotra (Director IMS GZB)
and all other Faculty and staff members of IMS who directly and indirectly
helped us in completing this project report.
 INTRODUCTION

The mining sector involves the extraction and processing of minerals and other
valuable resources from the earth. It is a crucial industry that provides the raw
materials needed for various industries, including construction, manufacturing,
energy, and agriculture.
The mining sector encompasses a wide range of activities, including
exploration, mine development, extraction, processing, and reclamation. Some
of the common minerals and resources extracted through mining include coal,
gold, silver, copper, iron ore, diamonds, and oil.
The mining industry has a significant impact on the global economy, with many
countries relying on it as a source of employment and revenue.
However, it also has environmental and social impacts, including habitat
destruction, water pollution, and community displacement. In recent years, the
mining industry has undergone significant changes, including increased
automation and digitalization, improved safety standards, and a focus on
sustainability and responsible mining practices.
The industry has also faced challenges related to declining ore grades,
geopolitical risks, and fluctuations in commodity prices. Overall, the mining
sector is a complex and dynamic industry that plays a critical role in global
economic development while also facing significant challenges and
opportunities for improvement.
The mining sector is the industry responsible for the extraction and processing
of minerals and other natural resources from the earth. It is a critical sector for
many countries around the world, providing essential materials for construction,
manufacturing, energy production, and other industries.

The establishment of a mining sector involves a series of steps that vary

depending on the country and the specific minerals or resources being targeted.
Generally, the process involves:
  Exploration and evaluation: This involves identifying potential mineral
deposits and assessing their economic viability. This can include
geological surveys, drilling, and other forms of testing.

 Planning and permitting: Once a viable deposit has been identified, a

mining plan is developed that outlines the proposed methods and
processes for extraction. This plan must be approved by regulatory
authorities and may require environmental impact assessments and other
forms of permitting.

 Construction and development: This involves building the necessary

infrastructure and facilities to support mining operations, such as access
roads, processing plants, and housing for workers.

 Operation and production: This is the actual extraction and processing of

the minerals or resources, which can involve a range of techniques
depending on the type of deposit and other factors.
 Closure and reclamation: When mining operations are complete, the site
must be closed and reclaimed to minimize environmental impacts and
ensure the safety of nearby communities.
 Establishing a mining sector can be a complex and challenging process,
requiring significant investment, expertise, and coordination between
government, industry, and other stakeholders. However, if done
responsibly and sustainably, it can provide important economic benefits
while minimizing negative environmental and social impacts.
MAJOR MINING SECTOR IN INDIA
There are numerous mining sectors established in India, covering various
minerals and resources. The major mining sectors in India include coal mining,
iron ore mining, bauxite mining, copper mining, zinc mining, and gold mining,
among others.
India has a rich mineral resource base, and mining has been a significant
contributor to the country's economic growth. Some of the key mining states in
India include Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, and Rajasthan.
It is difficult to give an exact number of mining sectors established in India as it
is a constantly evolving industry with new mines being established and old ones
being closed or phased out. However, according to the Ministry of Mines in
India, there are over 3,100 operational mines in India as of 2021.

BLOCK CHAIN
Blockchain technology is a decentralized, distributed ledger technology that
allows for secure, transparent, and tamper-proof transactions between parties
without the need for intermediaries. The technology was first introduced in
2008 as the underlying technology behind the cryptocurrency Bitcoin, but has
since been applied to a wide range of industries and use cases beyond just
finance.
At its core, a blockchain is a digital ledger of transactions that are recorded and
verified by a network of computers. Each block in the chain contains a
cryptographic hash of the previous block, creating a chain of blocks that cannot
be altered without the consensus of the network. This makes the blockchain
secure, transparent, and resistant to tampering or hacking.
Blockchains can be public or private, depending on the level of access and
permissions required. Public blockchains are open to anyone, and transactions
are transparent and visible to all participants. Private blockchains, on the other
hand, are restricted to a group of participants who have been granted access, and
transactions are typically only visible to those participants.
One of the key features of blockchain technology is its ability to enable smart
contracts, which are self-executing contracts with the terms of the agreement
written into the code. Smart contracts can automate the process of verifying and
executing transactions, reducing the need for intermediaries and improving
efficiency.
Another potential benefit of blockchain technology is its ability to provide
greater security and privacy for users. Transactions on a blockchain are secured
using cryptographic algorithms, making it difficult for attackers to hack or
manipulate the network. Additionally, users can remain anonymous on a public
blockchain, while still being able to participate in transactions.
Overall, blockchain technology has the potential to revolutionize the way we
conduct transactions and exchange value, from finance to supply chain
management to voting systems and beyond. However, the technology is still in
its early stages, and there are ongoing challenges around scalability, regulation,
and adoption that need to be addressed before blockchain can reach its full
potential.

LOGISTICS
Logistics refers to the planning, coordination, and execution of the movement
and storage of goods, materials, and information from their point of origin to
their destination. It involves the integration of transportation, warehousing,
inventory management, packaging, and other related activities to ensure that
products are delivered to the right place, at the right time, and in the right
condition. Logistics plays a critical role in many industries, including
manufacturing, retail, e-commerce, and transportation. Effective logistics
management can help companies reduce costs, improve efficiency, and enhance
customer satisfaction by ensuring that products are available when and where
they are needed.
Key elements of logistics management include:
 Transportation: Selecting the most appropriate modes of transportation,
such as trucks, ships, planes, or trains, and managing the movement of
goods along supply chains.

 Warehousing and inventory management: Managing the storage and

movement of products in warehouses and distribution centres, and
ensuring that inventory levels are optimized to meet customer demand.

 Packaging and labelling: Ensuring that products are packaged and

labelled correctly to prevent damage during transit and to comply with
regulatory requirements.

 Information management: Managing the flow of information related to

logistics activities, including tracking shipments, monitoring inventory
levels, and communicating with suppliers and customers.

 Risk management: Identifying and mitigating risks related to logistics

activities, such as delays, disruptions, and security threats.
  Effective logistics management requires careful planning, coordination,
and communication among all parties involved in the supply chain,
including suppliers, manufacturers, distributors, and customers.

BLOCKCHAIN IS USED IN LOGISTICS FOR FOLLOWING PURPOSE

The mining sector can use blockchain technology in logistics to improve supply
chain efficiency, increase transparency, and reduce costs. Here are some ways
in which blockchain technology can be used in the mining industry's logistics:

 Tracking of mining products: With blockchain technology, it is possible

to track mining products from the source to the end consumer. Each stage
of the supply chain, from mining to processing, refining, and
transportation, can be recorded on the blockchain, creating a tamper-
proof record of each transaction. This increases transparency and helps to
prevent fraud or counterfeit products from entering the supply chain.

 Smart contracts for supply chain management: Smart contracts can be

used to automate supply chain management processes, such as
scheduling, inventory management, and payments. For instance, a smart
contract can be created to automatically release payment once a shipment
of mining products reaches its destination.

 Improved logistics management: Blockchain technology can be used to

improve logistics management by providing real-time visibility into
shipments. This can help to optimize delivery routes, reduce delays, and
ensure that products reach their destination on time.

 Secure and efficient data sharing: Blockchain technology enables secure

and efficient data sharing between participants in the supply chain. This
can help to reduce communication errors and improve collaboration
among stakeholders.
  Tracking of environmental impact: Blockchain technology can be used to
track the environmental impact of mining operations. This can help to
ensure compliance with environmental regulations and promote
sustainable mining practices.

Overall, blockchain technology has the potential to transform the logistics and
supply chain management of the mining industry, improving efficiency,
transparency, and sustainability.