Mining Titan BHP to Use Blockchain for Iron Ore Sales to Top Steel Producer

Mining Titan BHP to Use Blockchain for Iron Ore Sales to Top Steel Producer

Multinational mining titan BHP Group expects to complete its first blockchain iron ore transaction with major Chinese steel producer Baosteel in the near future.

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Multinational mining titan BHP Group expects to complete its first blockchain iron ore transaction with China’s Baowu Steel Group’s listed arm, Baosteel, in the near future.

BHP’s announcement on May 12, as reported by Reuters, followed a yuan-denominated sale of iron ore to Baosteel worth $14.10 million (100 million yuan) last month.

The move toward blockchain digitization of iron ore sales and the choice of renminbi settlement are both being hailed as major innovations in global trade. 

Baowu, now the world’s largest steel producer, has reportedly issued its own statement on a series of recent yuan-denominated deals with BHP and two other leading iron ore suppliers, Rio Tinto and Vale, noting that:

“The active promotion of renminbi settlement in iron ore transactions is not only for operational needs, but also in line with the trend of yuan internationalization.”   

Baowu revealed that it had recently concluded a successful blockchain-supported yuan-denominated purchase with Rio Tinto. 

China is the world’s largest iron ore importer and has seen an 11% increase in imports this April in the aftermath of the COVID-19 pandemic, which slowed production by domestic steel mills earlier this year.

BHP’s longstanding interest in blockchain 

As reported, BHP has recently tested blockchain technology in a joint pilot with Japanese shipping firm NYK, using the technology to verify sustainable biofuel as part of industry decarbonization efforts.

The corporation, which has over 72,000 employees and contractors worldwide, has been researching the use of the Ethereum blockchain for several years, as the network’s co-founder Vitalk Buterin confirmed to Cointelegraph back in 2017.


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Multinational mining titan BHP Group expects to complete its first blockchain iron ore transaction with major Chinese steel producer Baosteel in the near future.

Austrian Steel Alukönigstahl Develops Blockchain-Based Steel Trading Database

Austrian Steel Alukönigstahl Develops Blockchain-Based Steel Trading Database

Alukönigstahl CEO Stefan Grüll is working on the business model for a blockchain-based steel trading database dubbed “STEEL but SMART”

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Austrian steel trading company Alukönigstahl is working on a blockchain-based steel trading data system, local media outlet industriemagazin.at reported on June 13.

Alukönigstahl CEO Stefan Grüll is working on the business model of a blockchain-based steel trading database dubbed “STEEL but SMART,” which targets traditional use cases. Within the framework of the project, Grüll reportedly founded a separate company called S1Seven GmbH that undertakes all blockchain-related activities.

Specifically, the system is set to provide stakeholders with clear data on steel products’ origin, account and industry standards, as well as information about product properties, processing, and deployment. As a result, the company intends to create a single source of complete documentation of the production history. Grüll said:

“Individual testimonials that are subject to statutory retention requirements and contain information on test and test results are linkable.“

However, Grüll noted that before launching the product, it is vital to form a consortium of stakeholders, steel manufacturers, plant builders, steel mills, and steel test equipment manufacturers in order to use a single „data structure based on certain standards.“ The blockchain-powered platform is expected to be rolled out at the end of the current year, with selected industry participants.

Blockchain technology has been gradually entering the supply chain sector, with many other stakeholders around the world having already integrated it into their internal processes. Earlier this week, precious metals streaming company Wheaton Precious Metals revealed that it will use blockchain to facilitate its metal accounting processes.

In late May, Swiss luxury watch and clock manufacturer Vacheron Constantin announced that it will start using blockchain technology to track its timepieces. Vacheron Constantin reportedly said that blockchain will help fight counterfeiters and guarantee authenticity of its watches, as well as protect potential customers from purchasing fakes.


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Alukönigstahl CEO Stefan Grüll is working on the business model for a blockchain-based steel trading database dubbed “STEEL but SMART”