LONDON — BHP Group has completed its first blockchain trade in iron ore with China Baoshan Iron & Steel Co Ltd, in a transaction worth around $14 million.
BHP and technology firm MineHub said in separate statements on Monday that blockchain – a digital ledger that forms the backbone of many cryptocurrencies such as bitcoin – would boost efficiency and transparency. They did not say whether BHP has used blockchain before for other uses.
For the past several years, commodities groups have been seeking to save money by using blockchain to digitize a sector that still uses millions of paper documents, but have come up against obstacles.
BHP said that the trial transaction using the MineHub platform was worth about $14 million and was delivered in June. The platform processed contract terms, exchanged digital documents and provided real-time cargo visibility, it added.
“The bulk commodity industry needs a digital revolution to reduce physical documentation processes,” said BHP sales and marketing officer Michiel Hovers.