World’s largest mining company BHP Group announced that it has completed a $14 million iron ore trade using blockchain platform developed by the Canada-based technology company MineHub Technologies.
The transaction was carried out between BHP and China Baowu Steel Group, a subsidiary of the world’s largest steelmaker China Baoshan Iron & Steel.
On June 19. Reuters reported that during the trade, BHP used the blockchain platform to digitally process contract terms, exchange documents, and provide real-time cargo visibility.
BHP completes first blockchain iron ore trade with China's Baosteel https://t.co/8VCcqWLcSk pic.twitter.com/q9qWtpoTIY — Reuters (@Reuters) June 29, 2020
The implementation of blockchain by BHP comes as a part of its plan to digitize the documentation process in commodities trading.
BHP sales and marketing officer Michiel Hovers said:
“The bulk commodity industry needs a digital revolution to reduce physical documentation processes.”
Baowu has also been investing in digitizing trade using blockchain technology.
In May, the company concluded a blockchain-based yuan-denominated purchase with another top mining group Rio Tinto.
BHP’s involvement in the blockchain sphere dates back to 2017, when Ethereum co-founder Vitalik Buterin revealed that the $92 billion firm was building a decentralized application to track natural resources.
In February 2019, BHP also successfully tested blockchain tech in partnership with a Japanese shipping company NYK.
Source: Cointelegraph | Image: Unsplash