BHP partners with GIP for $2 bn WAIO power network investment

BHP Group Limited has entered a binding agreement with Global Infrastructure Partners (GIP), part of BlackRock, to establish a trust entity for its Western Australia Iron Ore (WAIO) inland power network. Under the agreement, BHP will retain 51% ownership and control, while GIP will provide $2 billion in funding for a 49% stake. BHP will pay the entity a tariff linked to its share of WAIO's inland power over a 25-year period.

BHP will maintain full operational control of WAIO, including its inland power infrastructure. The partnership aims to enable BHP to access capital while maintaining strategic control of critical infrastructure, supporting its long-term strategy to increase iron ore production to 305 million tonnes per annum.

The net proceeds from this arrangement will be incorporated into BHP's capital allocation framework. Completion of the deal is anticipated towards the end of FY2026, subject to regulatory approvals, including Foreign Investment Review Board approval.