BHP conducts iron ore sale with Chinese steel giant on blockchain platform
June 29, 2020, 4:19PM EDT
1 min read
BHP Group announced Monday that it completed its first blockchain-based trade worth $14 million using a platform created by a Canadian technology firm MineHub.
The trade involved a transaction tied to iron ore, a commodity it frequently trades. The Minehub blockchain platform was used to digitally process contract terms, exchange documents, and provide real-time cargo visibility, according to a report by Reuters.
The two entities that carried out the deal were BHP and China Baowu Steel Group, a subsidiary of China Baoshan Iron & Steel, also known as Baosteel and China's largest steel producer.
BHP's use of the technology is part of its plan to digitize the commodities trading sector to help ease the physical documentation processes, BHP sales and marketing officer Michiel Hovers told the publication.
Both BHP and Minehub made it clear in separate statements that "blockchain would boost efficiency and transparency." However, the comments did not specify whether the tech has been used before by BHP.
Last month, upon completion of its first yuan-denominated sale of iron ore to Baosteel, BHP had stated that it would continue exploring blockchain for future transactions.