Chinese top steelmaker, Nanjing Iron & Steel Co Ltd has completed a $16.87 million blockchain based trade in iron ore with Australian mining firm – Rio Tinto and Hancock Prospecting Pty. Ltd.
This is the Chinese steelmaker’s first ever blockchain based trade in iron ore.
Nanjing Iron & Steel through the deal acquired a $16.87 million shipment of steelmaking ingredients from Hope Downs, a joint venture initiative between Australian mining firm Rio Tinto and Hancock Prospecting Pty. Ltd. The shipment contained 170,000 tonnes of Pilbara iron ore fines and lump.
The multi-dollar trade deal was supported by Singapore based bank DBS Bank and trade finance platform contour.
Simon Farry, vice president of sales and marketing at Rio Tinto told Reuters that recent paperless deals were part of their long-term strategy to push the adoption of Blockchain in China and bring the industry closer to a full cross-border digital trade future.
Carl Wegner, CEO of Contour also told Reuters that “the process of issuing customers with digital letters of credit (LoCs) via blockchain technology was 90% faster than obtaining paper LoCs” .