BHP makes plans for blockchain iron ore sales

By William Smith
Share
Australian mining giant BHP has reportedly said it is to explore the use of blockchain for the sale of iron ore. Chinese firm Baosteel is the expected...

Australian mining giant BHP has reportedly said it is to explore the use of blockchain for the sale of iron ore.

Chinese firm Baosteel is the expected buyer, with the deal to be taking place “soon”.

As with all things blockchain related, the threat is that any explanation will devolve into hype and buzzwords, so it is helpful to have a clear definition of what blockchain involves. Essentially a distributed list or ledger, the blockchain contains chronological records of transactions signed cryptographically, shared between all participants in a network. Its benefits lie in its traceability, making transparent dealings along a supply chain, as well as its ability to secure the authenticity of items.

SEE MORE:

The blockchain market has been estimated to be worth $8.68bn by the end of 2024. A survey conducted last year by Deloitte found that 83% of respondents said that their organisations could see compelling use cases for the technology, with more than half seeing blockchain as a critical priority.

Blockchain itself was identified by Gartner as a top 10 tech trend for 2020, with this news from BHP seemingly verifying their choice. BHP has recently been in the news for its ongoing efforts as the sector is hit by the coronavirus pandemic, with the firm implementing social distancing, health screening and hygiene accessibility measures.

The news comes as BHP completed a transaction of iron ore to China Baoshan Iron & Steel Co Ltd in China’s RMB currency. Worth nearly $14.1mn, the sale came after Baosteel also used RMB to pay for iron ore from Brazilian firm Vale SA in January, representing a trend for RMB to be used internationally.

Share

Featured Articles

Teck Resources CEO in Critical Minerals Support Plea

Teck Resources CEO Jonathan Price highlights need for critical minerals development in Canada in same way government backs the EV and battery sectors

Focus on: Antimony, an Obscure but Vital Critical Mineral

Antimony is one of the lesser-known critical minerals yet is vital for the EV revolution and for all industries that require heat retardant materials

Zijin & Barrick Expand Gold Interests in Ghana & DRC

Global Gold market roundup: Zijin Mining buys Newmont Ghana gold asset; Barrick Gold's new DRC gold find; Gold ETF Holdings rise, says World Gold Council

Hurricane Helene Blow for US Quartz Mining & Chip Supplies

Supply Chain & Operations

Rio Tinto eyes Arcadium Lithium in Battery Metals Move

Operations

Electric Mining Machines Growth 'will Drive Battery Demand'

Sustainability