BHP, formerly known as BHP Billiton, has successfully completed its first blockchain trade deal with China Baoshan Iron & Steel Co Ltd worth $14 million.
Anglo-Australian multinational mining company, BHP announced that it has successfully made its first blockchain-based transaction with China Baoshan Iron & Steel Co Ltd. According to the media, the transaction that is estimated to be worth $14 million was facilitated by a Canadian technology firm MineHub.
Despite being immature in the market, blockchain technology is aiding different industries to achieve another level of efficiency and also transparency. Worthwhile noting, the blockchain industry should not be confused with crypto assets like Bitcoin, which essentially runs on a similar network.
Blockchain technology is gaining attention as interested parties look for tamper-proof technology that can replace traditional paperwork.
MineHub was used by the two mining industries as a platform to exchange contract terms, digital documents and also provide real-time cargo tracking.
“The bulk commodity industry needs a digital revolution to reduce the documentation process,” said BHP sales and marketing officer Michiel Hovers.
With the coronavirus pandemic having slowed down the supply chain in most industries, the quick adoption of blockchain technology might see them increase their revenue.
BHP and MineHub Leads Way to Transparent Mining Industry Future with Blockchain
BHP being a leader in the mining industry that for ages has been marred with fraud and exploitation, will be a perfect example for the rest to follow.
“Current pandemic events and fraud cases in the commodity trading industry are causing a step-change in the adoption of digital solutions,” said MineHub Chief Executive Arnoud Star Busmann.
MineHub is also in the process of developing infrastructure that is meant for base metal concentrates, structures finance and also emission tracking.
The mining industry is one that cannot be ignored when it comes to environmental degradation and protection. For years, miners have mostly been involved in mining activities that ended up leaving the surrounding environment in a state worse for global warming.
On the other hand, the mining industry has been a leading conflict factor in developing countries like in DRC Congo where a lot of people are exploited in favor of the companies. Besides, different parties in the mining industry have fallen victim to fraud due to the tampering of documentation.
All these challenges are likely to be solved by the use of blockchain technology. BHP and MineHub are leading by example to clean cartels in the mining industry that results in unnecessary friction in the supply chain.
Once implemented wholly by BHP, there are high possibilities that other companies might follow the same route and adopt blockchain.