The world’s largest mining company, BHP Group, announced today that it has completed a $14 million iron ore trade using a blockchain platform developed by MineHub Technologies, a Canadian-based technology company.
The transaction was between BHP and China Baowu Steel Group, a subsidiary of the world’s largest steel company, China Baoshan Iron & Steel, commonly known as Baosteel.
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BHP made the trade announcement last month; it said it was planning to run a blockchain-based iron ore trade with Baosteel.
During the trade, BHP used the blockchain platform to digitally process the terms of the contract, exchange documents and provide real-time visibility of the load, according to a Reuters report. BHP’s implementation of blockchain is reportedly part of its plan to digitize the documentation process in the commodity trade. BHP’s sales and marketing officer, Michiel Hovers, said:
„The bulk commodity industry needs a digital revolution to reduce the physical documentation process.“
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Baowu has long invested in the digitization of trade using block chain technology. In May, the company completed a blockchain technology-based purchase in Yuan with another major mining group, Rio Tinto.
BHP’s involvement in the blockchain arena dates back to 2017, when Ethereum co-founder Vitalik Buterin revealed to Cointelegraph that the $92 billion company was building a decentralized application to track natural resources.
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In February 2019, the mining giant also successfully tested blockchain technology in partnership with Japanese shipping company NYK