BHP, China Minmetals complete first cross-border copper concentrate deal using MineHub

BHP and China Minmetals have completed the first cross-border copper concentrate trial shipment processed on MineHub Technologies, the blockchain technology platform said.

This was the first transaction of its kind for copper concentrates. The parties plan to continue to promote the use of efficient post-transaction process solutions, create a better customer experience and achieve transparency and tracking of carbon emissions reduction, MineHub added.
The copper transaction had a cargo value of $30 million and was shipped in the second half of 2021.
Minmetals worked with BHP to use the blockchain platform for secure and transparent inter-company and cross-border data sharing, including carbon emissions data sharing and a metals assay exchange process, MineHub chief executive officer Arnoud Star Busmann said.
The BHP-Minmetals transaction used a MineHub node hosted in mainland China to ensure local data residence.
MineHub has been adding functionality to its platform in recent weeks, including carbon tracking and environmental, social and governance compliance, as well as a digital assay application for concentrates.
Complex pricing mechanisms, lengthy settlement processes and high processing costs are common in trading copper concentrates, with inefficiencies associated with manual, paper-based processes and a lack of transparency among supply chain market participants.
According to BHP chief commercial officer Vandita Pant, the processes included in the MineHub blockchain transaction with Minmetals included performance of contract terms, payment notifications, digital document exchange, chemical assay exchange and carbon emissions data sharing.
“The pilot digitized the assay exchange process - used to determine the quality of the concentrate - to improve efficiency and transparency in what is known to be one of the most complex and sensitive processes in international bulk commodity transactions,” she said in a blog posted on the company’s website.
“We’re planning another trial with an expanded scope in early 2022,” she added.
Mining giant BHP has also used MineHub to complete iron ore transactions with steel producer China Baowu.

Andrea Hotter

ahotter@fastmarkets.com

Published

Andrea Hotter

December 14, 2021

13:34 GMT

New York