Vale completes first iron ore deal on blockchain

Brazilian mining company Vale has completed its first iron ore sale using blockchain technology. The buyer of the 176,000-ton parcel was China’s Nanjing Iron&Steel Group.

We have completed our first blockchain transaction in an iron ore sale from Malaysia to China. With this important step, we move further towards bringing more security and transparency into the sales and trade process. Visit https://t.co/5PkccVQ1FZ to know more. pic.twitter.com/WL8dAfKedJ

— Vale Global (@valeglobal) September 3, 2020

Shipment of ore to China was from Teluk Rubiah marine terminal in Malaysia.

The letter of credit was issued via the Contour blockchain platform. Shipment documents were processed using the CargoDocs DLT solution from essDOCS. All actions were performed through a single interface integrated into Contour.

DBS Bank Ltd and Standard Chartered’s Malaysian division participated in the deal.

The use of blockchain delivered “end-to-end security and real-time transparency of the documentation” for all participants, Vale noted.

The volume of emails and documents typically exchanged by the parties also fell sharply, and collaboration improved thanks to access to a single solution for executing the deal, the company added.

Earlier, Standard Chartered carried out its first letter-of-credit transaction via the Contour blockchain platform in May.

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