Producer of iron, Vale, has now succeeded in selling its iron ore for the first time to its customers through blockchain.
Vale revealed through its website that a total of 176,000 tons of iron was bought by Nanjing Iron & Steel and its transportation to China from Malaysia was a success.
A letter of credit for the transaction was provided by the Contour blockchain platform while CargoDocs solution from essDOC was used to process shipping documents and the electronic bill of lading.
Vale said security was highly prioritized by using blockchain technology for the end-to-end transaction. With blockchain, there was no need to fill and submit several papers as is usually the case.
Concerning this, the company said:
“It is an important milestone towards the digitalisation of the sales and trade process, bringing innovation to the traditional paper-intensive trade transactions and offering a better service to the clients as well as predictability in the steel value chain.”
Some other miners are eyeing the use of blockchain so that problems that arise from shipping will be reduced. In May, the BHP Group and Baosteel had an agreement to trade iron ore and blockchain was supposed to be used. BHP Group completed its pilot test with NYK shipping firm to know which biofuels would serve efficiently for the purpose.