BHP Group and China Baowu have completed their first iron ore trade on MineHub Technologies’ blockchain-based platform.
As reported by Reuters, the trial transaction using the MineHub platform was worth around $14 million and was delivered in June. The platform was used to process contract terms, exchange documents online, and provide visibility and accountability along the supply chain.
“The bulk commodity industry needs a digital revolution to reduce physical documentation processes,” said Michiel Hovers, BHP sales and marketing officer.
MineHub said that this is the first of a series of transactions with various industry partners, guiding the next evolution of functionality on the MineHub Platform that will ultimately provide commodity supply chains with a fully digital end-to-end fulfilment process. It also reflects MineHub’s development approach – hands-on collaboration and continuous validation with industry – to ensure that the platform delivers on the value and user experience expectations.
Arnoud Star Busmann, CEO of MineHub, said, “Working with the world’s largest mining company and the world’s largest steel producer on designing the digital future of critical supply chains like iron ore is incredibly exciting. This series of transactions, each focusing on different aspects of the post-trade process, will allow MineHub to incrementally expand the platform’s functionality and scalability into the iron ore and other mineral commodity markets, incorporating real-life user experience.”
MineHub is also developing and validating digital solutions in complementary settings and in collaboration with other industry partners. Innovative work is underway for instance in base metals concentrates, structured finance and emissions tracking to further prove the value that can be created through digitalisation.
Mr Star Busmann continued: “We will incorporate all these learnings into the next MineHub release, planned for Q4 2020, and which will start to provide a solution to the increasingly urgent need for industry-wide digitalisation, by boosting both safety, transparency and resilience of critical supply chains. Especially as current pandemic events and fraud cases in the commodity trading industry are causing a step-change in the adoption of digital solutions.”