One major Chinese steelmaker is in the latest blockchain news for trading more than $16 million in an iron ore trade with the world’s second largest mining group, Rio Tinto, as well as Hancock Prospecting Pty. Ltd.
This is a first ever transaction via blockchain for the Chinese steelmaker Nanjing Iron and Steel Company, and they started that the iron ore trade was successfully completed on the blockchain.
Obtaining a shipment of $16.87 million, the trade consisted of steelmaking ingredients from the joint venture between the multinational mining group Rio Tinto and Hancock Prospecting Pty. Ltd. – holding more than 170,000 tonnes of Australian iron ore fines and lump.
Reports on Reuters showed that the dollar-denominated transaction was supported by the Singapore-based DBS Bank and the trade finance platform Contour. With this, we can see yet another blockchain based trade settlement by the world’s second largest mining group named Rio Tinto. In May this year, the crypto news showed that China’s Baowu Steel Group also settled a yuan-denominated purchase with the same mining giant.
From another perspective, this leads us to believe that another blockchain-based trade settlement by the world’s second largest mining group (Rio Tinto) was successfully carried out. The technology is now widely recognized for its massive potential to digitize trade finance and reduce the manual paperwork.
As Simon Farry (who is the vice president of sales and marketing at Rio Tinto) summed up, the push towards conducting paperless deals on blockchain is all part of the company’s long-term plans for blockchain adoption. With this, the mining industry is about to move closer to cross-border digital trade in the future.
On the other hand, we also have the CEO of Contour, Carl Wegner, who said that blockchain technology is seeing increased interest from mills and miners. He also noted that using this technology has made processes such as issuing letters of credit around 90% faster.
All in all, the Chinese steelmaker conducting a $16.87 million deal via blockchain shows that trade financing is very popular. The use of blockchain has been proven many times before, even from the world’s largest mining company BHP and its recent $14 million iron ore trade with the largest steelmaker in the world, Baosteel.
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