One of the world’s largest mining firm, BHP Group, today announced that it has completed $ 14 million in iron ore trading using a blockchain platform developed by Canadian technology company MineHub Technologies.
The exchange was done among BHP and China Baowu Steel Group, an auxiliary of the world’s biggest steelmaker China Baoshan Iron and Steel, usually known as Baosteel.
BHP made the declaration in regards to the exchange a month ago saying it was wanting to execute a blockchain-based iron mineral exchange with Baosteel.
During trading, BHP uses the blockchain platform to digitally process contract terms, exchange documents and make shipments visible in real time, according to a Reuters report. The debut of the blockchain by BHP should be part of its plan to digitize the certification process in trade in goods. Michiel Hovers, sales and marketing manager at BHP, said:
“The bulk commodity industry needs a digital revolution to reduce physical documentation processes.”
BHP and Baowu’s blockchain progression
Baowu made a long-term investment in digital trade through the use of blockchain technology. In May, the organization finished up a blockchain-based yuan-based purchase with another top mining company Rio Tinto.
BHP’s ownership in the blockchain dates back to 2017 when co-founder Ethereum Vitalik Buterin According to a reliable resource, the $ 92 billion company created a decentralized application for tracking natural resources.
Last February of 2019, the mining giant also successfully tested the blockchain technology in collaboration with the Japanese shipping company NYK.