Highlights
- BHP enters agreement with GIP for a USD 2 billion investment in WAIO inland power.
- BHP retains operational control of WAIO’s inland power infrastructure under the new structure.
- Deal completion expected by FY2026, subject to regulatory approvals including FIRB clearance.
BHP (ASX:BHP) has entered into a binding agreement with Global Infrastructure Partners (GIP), part of BlackRock, concerning BHP’s share of Western Australia Iron Ore’s (WAIO) inland power network. The agreement will see a trust entity created, 51% owned and controlled by BHP, with GIP providing USD 2 billion for a 49% stake.
WAIO comprises four principal joint ventures in the Pilbara region of Western Australia, with BHP holding an 85% interest. Under the terms of the agreement, BHP will pay the trust entity a tariff linked to its share of WAIO’s inland power over a 25-year period.
Operational Control and Asset Ownership
The agreement allows BHP to retain full operational control of WAIO, including its inland power infrastructure. It does not affect BHP’s existing joint venture agreements, its obligations under agreements with the State of Western Australia, or ownership of WAIO assets, including the inland power network.
WAIO will continue to plan and execute its long-term strategy aimed at increasing iron ore production to 305 million tonnes per annum. Targeted investments will support these operations while retaining flexibility for future growth.
Capital Allocation and Regulatory Approvals
Net proceeds from the transaction will be incorporated into BHP’s capital allocation framework.
Share Price Snapshot
BHP was trading 0.41% lower at GBX 2,183 per share as of 09 December 2025
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