BHP Group completes first yuan-based iron ore sale to China’s Baosteel Group
May 12, 2020 6:14 pm
BHP Group, Multinational mining titan foresees to complete its first blockchain iron ore transaction shortly with major Chinese Baowu Steel Group’s listed arm, Baosteel.
On May 12, BHP announced, a sale of iron ore worth of $14.10 million (100 million yuan) to Baosteel last month, as reported by Reuters. The progress toward blockchain digitization of iron ore sales and the choice of renminbi settlement are both being acclaimed as major innovations in global trade.
Baowu, the world’s largest steel producer, has reportedly published its statement on a series of recent yuan-denominated deals with BHP and two other leading iron ore suppliers, Rio Tinto and Vale writing 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 disclosed that it had recently concluded a successful blockchain-supported yuan-denominated purchase with Rio Tinto.
The world’s largest iron ore importer is China and it has seen an 11% increase in imports this April in the consequence of the COVID-19 pandemic, which decreased production by domestic steel mills earlier.
Adoption of Blockchain Technology
In a joint pilot with Japanese shipping firm NYK, BHP has recently tested blockchain technology to check sustainable biofuel as part of industry decarbonization efforts. The corporation has been studying the use of the Ethereum blockchain for several years, which has over 72,000 employees and contractors worldwide.