Iron ore goes paperless thanks to Chinsay, Rio Tinto-led team

Chinsay, working alongside Rio Tinto and Cargill, has successfully made the world’s first paperless trade deal of iron ore
Iron ore goes paperless thanks to Chinsay, Rio Tinto-led team Iron ore goes paperless thanks to Chinsay, Rio Tinto-led team Iron ore goes paperless thanks to Chinsay, Rio Tinto-led team Iron ore goes paperless thanks to Chinsay, Rio Tinto-led team Iron ore goes paperless thanks to Chinsay, Rio Tinto-led team

A look at Chinsay’s Intelligent Contract Platform (ICP)

The deal, supported by HSBC Singapore and BNP Paribus, involved the bulk sale of iron ore by Rio Tinto that originated in Australia, destined for a Cargill customer in China.

"Building upon the first fully digitised trade finance transaction completed in November 2018, Rio Tinto and Cargill have gone two steps further by extending this across the full value chain from acceptance of key commercial terms through to delivery," Chinsay officials said, adding that this was done by integrating with Chinsay's Intelligent Contract Platform (ICP) and essDOCS' Document Exchange platform (CargoDocs DocEx).

It also is another step ahead for partner Voltron, which is working to bring the platform closer to commercial reality.

Using ICP, the contract process can be automated, reducing the time spent on issuance of contracts by about 98% - or from three to four days to just 1.5 hours.

Chinsay called the transaction a "unique demonstration of innovation at work", adding that connecting the companies involved builds an ecosystem that permits organisations to benefit from the value of others with the shared goal of success.

"Our collaboration with Cargill and Rio Tinto earlier this year created the first-ever digitalised trade. We continued work with these companies, and in partnership with them, along with HSBC, BNP, essDOCS and Voltron, just completed the first-ever paperless iron ore trade," Chinsay CEO Colin Hayward said.

"This is a unique example of vendors, global corporations and a bank consortium coming together for a ground-breaking initiative, which is significant in demonstrating the evolution of commodity markets."

Cargill Metals managing director Lee Kirk added that this milestone is an "industry-defining solution" that will evolve the trade process as a whole.

"From acceptance of key commercial terms through to delivery, the speed achieved from a fully digitalised trade enables us to better meet the needs of our customers across the globe. Innovation is a vital part of the Cargill DNA, and we have always been strong supporters of digitalising the trade process."

Simon Farry, who serves as vice president of sales and marketing for Rio Tinto's iron ore business, noted that it has been focused on using technology to improve the customer experience.

"The successful conclusion of this pioneering project brings us one step closer to a future of fully digital cross-border trade," Farry said.