One of the world’s largest mining companies, BHP Group, announced this week 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 the mining giant BHP and China Baowu Steel Group, a subsidiary of the world’s largest steelmaker China Baoshan Iron & Steel using a blockchain platform. BHP revealed last month that it was planning to execute a blockchain-based iron ore trade with Baosteel.
The BHP plans to digitize the documentation process using blockchain.
According to a Reuters report, during the trade, the mining giant BHP used the blockchain platform to digitally process contract terms, exchange documents, and provide real-time cargo visibility using the blockchain technology. The use of blockchain by BHP purportedly comes as a part of its plan to digitize the documentation process in commodities trading. The BHP sales and marketing officer Michiel Hovers noted that the bulk commodity industry needs a digital revolution to reduce physical documentation processes. The report further noted that the BHP and technology firm MineHub said in separate statements on Monday that blockchain would boost efficiency and transparency in the business.
The mining giant had successfully tested blockchain tech in partnership with a Japanese shipping company NYK.
Regulators take a serious look at blockchain amid the pandemic.
Governments all over the world are looking at the blockchain technology more seriously amid the shutdowns due to the pandemic. Blockchain technology was initially intended to pin cryptocurrencies like bitcoins, but over the last year, the technology is being used in many different sectors all over the world. The technology is being used in healthcare, logistics, and many other fields in many countries. Earlier, the US Senate proposed the blockchain technology to be used for remote voting and other activities amid the shutdowns because of the pandemic.