Mining giant BHP Group PLC has entered into a $2bn infrastructure agreement with BlackRock subsidiary Global Infrastructure Partners in relation to its share of Western Australia Iron Ore's inland power network.
Under the agreement, a new trust entity will be set up, with BHP holding a 51% controlling stake and GIP providing $2bn in funding for the remaining 49%. BHP added that it will pay the entity a tariff linked to its share of WAIO's inland power over a 25‑year period.
BHP said the agreement would not affect its existing joint venture agreements or its obligations under its agreements with the State of Western Australia or affect ownership of any WAIO assets.
"Net proceeds will be incorporated into and evaluated in accordance with our capital allocation framework," said BHP. "Completion is expected towards the end of FY2026, subject to certain regulatory approvals including Foreign Investment Review Board approval."
Reporting by Iain Gilbert at Sharecast.com