(Yicai Global) June 29 -- Australia’s BHP Group and China Baowu Steel Group have carried out the first iron ore deal using blockchain technology.
The blockchain-enabled transaction between the world’s largest mining company and China’s biggest steelmaker was worth USD14 million, The Paper reported today. The ore will be delivered this month.
MineHub, a Canadian tech company, provided technical support and services for the transaction, which covered a series of processes including contract clause execution, payment notification, digital file exchange, and real-time cargo visibility (quantity, quality, and location.)
BHP said that the risk of over-reliance on paper documents in commodity trading has been heightened by the Covid-19 pandemic. That is making it difficult for shipping agencies and banks to ensure that documents such as freight papers are delivered to customers and their banks in a timely manner when offices were closed or downsizing their operations.
In April, BHP and Baowu Steel also completed the first cross-border Chinese yuan settlement for imported iron ore, amounting to nearly CNY100 million (USD14.1 million).
Editor: Peter Thomas