Hot iron: steel sales on the blockchain

Australian-British resource giant BHP Group Limited announced on Monday that they were using the blockchain for a $ 14 million deal to sell iron ore to a top steelmaker. Multinational mining company BHP Group successfully completed the first blockchain-based iron ore transaction with, China’s largest steel producer, Baosteel, this week. According to information from the Reuters news agency, BHP made public on May 12 that $ 14.1 million worth of iron ore was sold to Baosteel last month. The blockchain platform Minehub provided the technological basis for this.

 

Where was the technology used?

The technology was used in the digital processing of contract terms, the exchange of documents and real-time transparency of the freight. BHP’s use of the technology should serve to digitize the raw materials sector to facilitate the documentation process, BHP’s sales manager Michiel Hovers told Reuters on June 29. Both BHP and Minehub emphasize in different messages that the blockchain would increase efficiency and transparency. However, it did not appear from the comments whether the commodity group had previously worked with blockchain technology. As a result of the successful trading, BHP stated to continue exploring the blockchain for future transactions.