BHP Group, the world’s largest mining company, announced having completed a $14 million iron ore trade deal using a Blockchain platform developed by Canada-based technology outfit 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, commonly known as Baosteel. The transaction saw BHP use the platform to process contract terms digitally, exchange documentation, and provide real-time cargo visibility according to a Reuters report. The implementation of Blockchain by BHP has been touted as part of the plan to digitize the documentation system within its ranks. BHP’s sales and marketing officer Michiel Hovers said that the company saw a need to take its commodities trading documentation online.
“The bulk commodity industry needs a digital revolution to reduce physical documentation processes.”
Baowu’s many dealings using Blockchain
BHP had announced plans to carry out the trade with Baowu about a month ago, a heads up that was followed closely by mostly those in the industry. Baowu was the perfect partner for BHP to carry out the transaction with because of the company’s experience in Blockchain dealings. Baowu has been invested in a while when it comes to digitizing trade using Blockchain technology. In May, the company completed a Yuan Blockchain-based purchase in a deal with top miner Rio Tinto. The company has been involved in Blockchain-based procurement procedures for a while now. Their activities began when Ethereum’s Vitalik Buterin revealed that a $92 billion firm was building a decentralized app to track natural resources. In February 2019, the mining the giant also successfully tested Blockchain technology in conjunction with a Japanese Shipping Company NYK.
