Electronic transactions that interchange goods and services through the medium of the Internet - or e-commerce - is available in several formats from the simplest level of displaying a product catalog to the highest level of facilitating transactions for large quantities and/or very expensive products.

The product catalog for business to business transactions can very similar to on-line consumer purchasing. The buyer adds items to a "shopping cart", gives a credit card number and the order is shipped. For small quantity and inexpensive items, a personal relationship between the buyer and seller is not critical.

At the other end of the spectrum, where large amounts of money and large quantities of products are being bought and sold, more detailed arrangements must be made for bidding and accepting bids, transferring payments, shipping products, and ensuring the quality of the products shipped. An advantage of on-line methods for procurement and metals trading is that it provides a more efficient and productive method of defining, receiving, and processing orders.

A disadvantage of on-line business is that personal contact between the seller and buyer is diminished and can be a problem especially for very specialized items. A question unanswered so far is whether e-procurement can actually provide the cost savings that have been claimed. Another issue that has been discussed is whether suppliers and buyers will be willing to pay the fee to the e-procurement or trading site where that fee comes out of the profit margin for the seller. The extra fee could be prohibitive especially on items with a low profit margin.

If e-procurement means that mining companies deal directly with manufacturers instead of through representatives, the savings in commissions could offset fees to the e-procurement facilitator. The relationship between manufacturer, representative, and customer is very likely to change significantly. However, no matter how efficient e-procurement becomes, I believe there will always be a place for personal interaction between company and manufacturer.

Last month’s newsletter listed a few Internet Web sites for on-line metal trading. The sites from the earlier article are categorized plus additional sites are listed. The list includes currently active sites, as well as several sites that will be coming on-line in the early part of 2001. Most of the upcoming sites are geared particularly toward supplies procurement. The companies starting the new e-procurement sites are small independent companies that have collected start-up capital, or they are companies funded by a consortium of 

mining companies. Many of the Web sites run by software vendors provide on-line purchasing of their products, but those sites are not listed here.

The sites are listed in three categories:

Full bidding/auction sites for metals trading, and purchase of large quantities of supplies and high ticket items. These sites offer a variety of services for goods that are beyond the credit card purchase level.

Shopping cart sites used mainly for single items or small quantities.

Information sites that provide a variety of information including links to e-procurement sites.

Iminex www.iminex.com Iminex is starting a trading exchange for buyers and sellers of industrial minerals. It is expected to be on-line in early 2001. The on-line exchange enables industrial minerals buyers to access sellers who are members of the exchange and identify the right product specifications, price, service, and delivery terms. Contracts can be negotiated online, streamlining the procurement process. The site will include financial and banking services, transportation and logistics, supply chain management, order processing and fulfillment, and other management tools. Part of the site is also given to mining equipment parts and supply providers. Membership is free.

Quadrem http://www.quadrem.com Sixteen mining companies have created an independent, global, Internet-based procurement marketplace for equipment and supplies exchange. The site will be operational in early 2001. Suppliers can pre-enroll through the Web site. The site services the entire purchase cycle through a confidential on-line data service. According to Quadrem, the site will reduce operating expenses, reduce the cost of goods sold, decrease working capital, and improve contract administration. It will catalogue many thousands of products and services and will facilitate the entire purchase-to-pay cycle.

There will be tens of thousands of products, covering both goods and services, available in the marketplace. Those include goods and services purchased to support activities of the core mining and extraction industries such as blasting, loading, hauling, crushing, leaching, concentrating, smelting and pyrometallurgical, hydrometallurgical, electromagnetic processes, and others. Value added services such as logistics, freight forwarding, financial settlement mechanisms, and more will be added to meet the needs of Quadrem members

MachineryTrader.com http://www.machinerytrader.com This is an auction site for heavy machinery such as air compressors, cranes, loaders, dozers, generators, and other large equipment. There is no charge to register. The site contains thousands of for-sale and for-rent equipment that can be searched. A section is provided with details about the equipment and includes pictures as well as descriptions. Auctions are held on-line and information is provided about consigning companies as well as the equipment they are offering. The site also has lists of equipment dealers, a search for parts, and you can post your own want-to-buy or for-sale items. A useful part of the site is the stolen equipment list.

Finning-Auctions.com http://www.finning-auctions.com This site auctions used heavy equipment and has been in operation since 1995. The equipment available on the site can be searched and descriptions and pictures are listed. Equipment information also includes serial numbers, location, starting price, high bid, and the amount of time left in the auction. They also provide other services such as inspections, warranty to financing, and shipping.

Valitura.com http://www.valitura.com Three companies are establishing this integrated supply chain market place for the mining and construction industries. The companies are Peabody Group, Arch Coal, and AMVEST Corporation. They expect more members to join the group. It is a neutral trading hub whose members will include both buyers and suppliers and is expected to be operational by March 2001. The target community is coal and metals mining, aggregates, industrial minerals and construction.

MineDepot.com www.minedepot.com This site offers free access to direct and indirect supplies purchasing. It has fixed dynamic pricing mechanisms for services, supplies, and new and used equipment. The will be operational on-line in early 2001. The company is pursuing strategic partnerships with producers and suppliers. A searchable data base of service providers is also included. Buyers can submit RFPs, bid on items or participate in open auctions. Other information will also be provided such as an events calendar, articles, analysis, and other management services. Another section facilitates finding service providers for environmental services as well as supplying detailed information on permitting processes, government procedures and contact information.

Geopoint - Global Exploration Data and Field Supplies http://www.geopoint.com.au Geopoint is an open e-commerce service for buyers and sellers in the global mineral exploration and mining industry. Buyers can purchase products online from participating sellers and search for information about product and service suppliers generally.

A central product database contains entries from numerous vendors around the world. The service does not hold stock but automatically forwards orders to vendors by email after customers have paid. Some products are files which can be downloaded but usually vendors dispatch goods directly to customers using their own delivery facilities.

Geopoint provides a structured catalogue of products, with each product fully described and illustrated. A wide variety of categories are included, covering all areas of information and data typically required by the mining and exploration industry as well as fieldwork hardware supplies. If applicable, product license agreements are displayed which must be viewed prior to ordering.

The types of products currently available on the service include digital maps, reports, company appraisals, remote imagery, field hardware, and several other categories.

Mininggear.com www.Mininggear.com The site supplies mining equipment and products. It brings together manufacturers, distributors and end buyers in a cooperative and completely secure interaction. The site will be ready at the end of year 2000. They are now negotiating strategic alliances with recognized industry-specific content providers that will bring thousands of potential buyers. Partnership alliances are being developed with distributors of mining related products that will populate the warehouse with thousands of mining products and equipment. The virtual warehouse makes ordering easy and distributes from multiple shipping points around the globe. It includes an inventory management system and allows a supplier to have an e-commerce enabled store with multiple pricing points.

Mine-on-line.com http://www.mine-on-line.com This site contains sections on careers, the media, mining news, mining companies and site operators, organizations, recruiters, schools, suppliers and a who’s who.

Info-Mine www.infomine.com This site offers an extensive amount of information about mines, mining companies, suppliers, software, articles, and just about anything else related to the mining industry. In the Suppliers area, you can also see lists of Web sites that provide procurement services, e-procurement (for supplies and equipment), and commodity trading sites.

This article is reprinted from Earth Science Computer Applications Monthly Newsletter. Click to the Web site for more information about the newsletter and other Gibbs Associates publications.