9th Dec 2025 02:54
(Alliance News) - BHP Group Ltd on Tuesday announced it has entered into a binding agreement with Global Infrastructure Partners, part of BlackRock Inc, covering its share of Western Australia Iron Ore's inland power network.
Under the deal, a trust entity will be established with the Melbourne, Australia-based diversified miner holding 51% and GIP providing USD2 billion in funding for a 49% stake. BHP will pay tariffs linked to its WAIO inland power usage over a 25‑year period.
BHP will retain full operational control of WAIO, including its inland power infrastructure.
WAIO continues to target iron ore output of 305 million tonnes per year, supported by investments while maintaining growth options.
BHP Chief Executive Officer Mike Henry said: "We are pleased to partner with GIP on this arrangement that enables BHP to access capital and maintain operational and strategic control of a critical part of WAIO’s infrastructure."
Completion is expected by the end of financial year 2026, subject to regulatory approvals including clearance from the Foreign Investment Review Board.
Shares in BHP were down 0.3% at AUD44.36 in Sydney on Tuesday afternoon, while Blackrock shares closed down 1.0% at USD1,062.02 in New York on Monday.
By Judy Amaca, Alliance News reporter Asia-Pacific
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