⌘K
t
BHP Group Limited (BHP) entered a binding agreement with Global Infrastructure Partners (GIP), a part of BlackRock, concerning BHP's share of the Western Australia Iron Ore (WAIO) inland power network. Under the agreement, GIP will provide US$2 billion in funding for a 49% stake in a newly established trust entity, with BHP owning and controlling the remaining 51%. BHP will pay the entity a tariff linked to its WAIO inland power share over a 25-year period, with completion expected towards the end of FY2026.
| Date | 9 Dec 2025 |
| Time | 07:00:01 |
| Category | Acquisitions and alliances |
| ID | 7438K |
9 December 2025
BHP has entered into a binding agreement with Global Infrastructure Partners (GIP), a part of BlackRock, in relation to BHP's share of Western Australia Iron Ore's (WAIO) inland power network (the Agreement).
WAIO comprises four main joint ventures in the Pilbara region of Western Australia. BHP holds an 85% interest in WAIO. Under the Agreement, a trust entity will be established that is 51% owned and controlled by BHP and GIP will provide US$2 billion in funding for a 49% stake. BHP will pay the entity a tariff linked to BHP's share of WAIO's inland power over a 25-year period.
Under the Agreement, BHP retains full operational control of WAIO including its inland power infrastructure. The Agreement does not affect BHP's existing joint venture agreements or BHP's obligations under its agreements with the State of Western Australia or affect ownership of any WAIO assets (including the WAIO inland power infrastructure). WAIO will continue to plan and execute its long-term strategy focused on increasing iron ore production to 305 million tonnes per annum, supported by targeted investments, while retaining optionality for future growth.
Net proceeds will be incorporated into and evaluated in accordance with our capital allocation framework.
Completion is expected towards the end of FY2026, subject to certain regulatory approvals including Foreign Investment Review Board approval.
BHP Chief Executive Officer, Mike Henry
"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."
BHP Chief Financial Officer, Vandita Pant
"This arrangement is an example of BHP's disciplined approach to capital portfolio management. It strengthens our balance sheet flexibility, supports long-term value creation and enhances BHP's shareholder value."
About GIP
Global Infrastructure Partners, a part of BlackRock, is an infrastructure investor with approximately US$189 billion in assets under management across the energy, transport, digital infrastructure, and water and waste management sectors. For more information, visit www.global-infra.com
Authorised for release by Stefanie Wilkinson, Group Company Secretary.
Contacts |
|
|
Media media.relations@bhp.com |
Investor Relations investor.relations@bhp.com |
|
Australia and Asia Gabrielle Notley +61 411 071 715
|
Australia and Asia John-Paul Santamaria +61 499 006 018 |
|
Europe, Middle East and Africa Amanda Saunders +44 7887 468 926 |
Europe, Middle East and Africa James Bell +44 7961 636 432 |
|
North America Megan Hjulfors +1 403 605 2314
Latin America Renata Fernandez +56 9 8229 5357
|
Americas James Bell +44 7961 636 432 |
|
BHP Group Limited ABN 49 004 028 077 LEI WZE1WSENV6JSZFK0JC28 Registered in Australia Level 18, 171 Collins Street Melbourne Victoria 3000 Australia Tel: +61 1300 55 4757 Fax: +61 3 9609 3015 BHP Group is headquartered in Australia
bhp.com |
|