The world’s largest mining company BHP Group announced today that it completed a $14 million iron ore trade using a 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, commonly known as Baosteel.
BHP made the announcement regarding the trade last month saying it was planning to execute a blockchain-based iron ore trade with Baosteel.
During the trade, BHP used the blockchain platform to digitally process contract terms, exchange documents, and provide real-time cargo visibility, according to a report from Reuters. The implementation of blockchain by BHP purportedly 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.”
BHP and Baowu’s innovation with blockchain
Baowu has long been invested 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 to Cointelegraph that the $92 billion firm was building a decentralized application to track natural resources.
In February 2019, the mining giant also successfully tested blockchain tech in partnership with a Japanese shipping company NYK.