By Rhiannon Hoyle
BHP Group has agreed to sell a stake in the inland power network used by its Western Australia iron-ore business to BlackRock's Global Infrastructure Partners in exchange for $2 billion in funding.
The deal is aimed at freeing up capital at a time when the world's biggest miner by market value is spending more on new projects to increase production of copper and branch out into potash.
BHP's Western Australia Iron Ore business, or WAIO, is one of the world's top sources of steel ingredient, iron ore. The mining giant holds an 85% stake in the business.
BHP said it has agreed to set up a trust entity for its inland power infrastructure in which Global Infrastructure Partners will get a 49% stake. BHP will own 51% and pay the entity a tariff linked to its share of WAIO's inland power over 25 years, it said.
Chief Executive Mike Henry said that "enables BHP to access capital and maintain operational and strategic control of a critical part of WAIO's infrastructure."
The deal, which requires regulatory approvals, is expected to be completed toward the end of BHP's fiscal 2026, which ends on June 30 next year, BHP said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
12-08-25 2111ET
