The multinational heavyweight in the mining sector BHP Group is reportedly planning to finalize the first blockchain iron ore transaction, using Baosteel – a subsidiary from China-based Baowu Steel Group.
Specifically, the announcement has appeared after a yuan-denominated sale of iron ore to Baosteel was conducted in April, with its value equivalent to $14.10 million (100 million yuan).
The initiative to digitize iron ore sales and the choice of renminbi settlement using blockchain are at the moment being classified as important innovations for international trade.
Baowu – one of the top steel manufacturers across the globe – has reportedly made announcements from its side, regarding numerous yuan-denominated transactions with BHP, along with two major iron ore providers, Rio Tinto and Vale.
“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 further disclosed details about a finalized yuan-denominated buy with Rio Tinto, with the help of blockchain.
Previously, BHP has reportedly partnered with NYK shipping corporation from Japan, in an attempt to conduct a testing phase of blockchain-powered sustainable biofuel verification, to help with the decarbonization task of the industry.