Rio Tinto completes paperless iron ore trade with Cargill
Rio Tinto and Cargill have completed the first fully integrated paperless trade transaction in iron ore.
Chinsay, the SaaS contracts company facilitated the deal alongside essDOCS.
Colin Hayward, CEO of Chinsay, said: “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. The trade used our platform, ICP, a market-leading data capture platform, for negotiating and collaborating, both internally and externally on contract issuance. 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.”
The deal involved the sale of Rio Tinto iron ore to a Cargill customer in China. WIth the technology, all participants in the deal were able to collaborate on a single, web-based platform, which was said to cut down the total time involved to under two hours compared to multiple days usually.
Lee Kirk, Managing Director for Cargill’s Metals business, said: “This is a significant, industry-defining solution which will evolve the trade process. 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, Vice President, Sales & Marketing for Rio Tinto’s Iron Ore business, said: “We are focused on utilising technology to improve the customer experience when they do business with Rio Tinto, such as reducing documentation turnaround times and simplifying processes. The successful conclusion of this pioneering project brings us one step closer to a future of fully digital cross-border trade.”