Rio Tinto and Cargill’s metal business have completed the first entirely digitalised iron ore trade, using Chinsay’s intelligence contract platform (ICP).
Using the technology, Rio Tinto and Cargill collaborated using the single platform to complete the commodity contract.
ICP dramatically reduces the time it takes to create, issue and approve commodity contracts from several days to under two hours.
The digitalisation of the trade process creates the opportunity to automate and deliver post-trade efficiencies through linking front, middle and back-office functions.
It allows companies to digitalise pre-trade processes early in the deal lifecycle, creating an agreed contract dataset that can be integrated with other operational systems, functions and processes.
The technology prepares companies for the use of technologies such as blockchain, machine learning, artificial intelligence and electronic trade documentation solutions.
Chinsay chief executive officer Colin Hayward said the inaugural digitalised trade marked an important achievement in the resources sector.
“This is a technological milestone for the industry, and we are delighted Rio Tinto and Cargill Metals chose to partner with us and use our ICP as the core technology to create this advance,” he said.
“We are constantly collaborating with clients, market participants, tech vendors and industry consortia to extend digitalisation further along the commodity trade lifecycle.”
Managing director of Cargill’s metal business Lee Kirk said ICP “has the potential to benefit the entire ferrous industry.”
“This is a great example of how we can leverage advancements in technology to benefit from increased speed, transparency and efficiencies that enable us to serve our customers and suppliers better.”