BHP Group Ltd. entered into a $2 billion equity‑financing agreement with Global Infrastructure Partners (GIP), a BlackRock‑owned investment firm, to fund the expansion of its Western Australia Iron Ore (WAIO) inland power network that supplies electricity to the Pilbara mining operations.
The transaction creates a new trust in which BHP holds a 51% controlling stake and GIP contributes the remaining 49% equity. BHP will pay a 25‑year tariff linked to its share of power use across WAIO, while retaining full operational control of both the WAIO assets and the power infrastructure. The structure does not alter existing joint‑venture terms, state agreements or asset ownership, and BHP’s 85% interest in WAIO remains unchanged.
The financing is intended to support BHP’s plan to lift WAIO production to 305 million tonnes per year, up from 212 million tonnes in FY2024, and to keep options open for further growth. BHP will assess the proceeds under its capital‑allocation framework, prioritising balance‑sheet strength and disciplined investment. Completion is expected by the end of BHP’s 2026 financial year, subject to regulatory approvals, including sign‑off from Australia’s Foreign Investment Review Board.
Market reaction to the announcement was muted, with analysts noting that the deal was largely anticipated and did not represent a surprise catalyst for the company’s valuation. The financing is viewed as a prudent step to secure capital while preserving control, rather than a dramatic shift in BHP’s strategic direction.
"We are pleased to partner with GIP on this arrangement that enables BHP to access capital and maintain operational and strategic control of a critical part of WAIO’s infrastructure," said CEO Mike Henry. CFO Vandita Pant added, "This arrangement is an example of BHP’s disciplined approach to capital portfolio management. It strengthens our balance sheet flexibility, supports long‑term value creation and enhances shareholder value."
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