LONDON (dpa-AFX) - BHP announced that it has entered into a binding agreement with Global Infrastructure Partners (GIP), part of BlackRock, regarding its share of Western Australia Iron Ore's (WAIO) inland power network. WAIO comprises four major joint ventures in the Pilbara region, where BHP holds an 85% interest.
Under the agreement, a trust entity will be established, with BHP owning and controlling 51% and GIP providing US$2 billion in funding for a 49% stake. BHP will pay the entity a tariff linked to its share of WAIO's inland power usage over a 25-year period.
BHP will retain full operational control of WAIO, including its inland power infrastructure. The agreement does not alter existing joint venture arrangements, obligations with the State of Western Australia, or ownership of WAIO assets. WAIO will continue to pursue its long-term strategy of increasing iron ore production to 305 million tonnes per annum, supported by targeted investments and maintaining flexibility for future growth.
Completion of the transaction is expected towards the end of fiscal year 2026, subject to regulatory approvals, including clearance from the Foreign Investment Review Board.
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