REG - BHP Group Limited - BHP enters US$2bn agreement with GIP on WAIO power

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RNS Number : 7438K  BHP Group Limited  09 December 2025

Exchange release

9 December 2025

 

BHP enters into a US$2 billion infrastructure agreement with Global Infrastructure Partners on WAIO inland power

BHP has entered into a binding agreement with Global Infrastructure Partners
(GIP), a part of BlackRock, in relation to BHP's share of Western Australia
Iron Ore's (WAIO) inland power network (the Agreement).

WAIO comprises four main joint ventures in the Pilbara region of Western
Australia. BHP holds an 85% interest in WAIO. Under the Agreement, a trust
entity will be established that is 51% owned and controlled by BHP and GIP
will provide US$2 billion in funding for a 49% stake. BHP will pay the entity
a tariff linked to BHP's share of WAIO's inland power over a 25-year period.
 

Under the Agreement, BHP retains full operational control of WAIO including
its inland power infrastructure. The Agreement does not affect BHP's existing
joint venture agreements or BHP's obligations under its agreements with the
State of Western Australia or affect ownership of any WAIO assets (including
the WAIO inland power infrastructure). WAIO will continue to plan and execute
its long-term strategy focused on increasing iron ore production to 305
million tonnes per annum, supported by targeted investments, while retaining
optionality for future growth.

Net proceeds will be incorporated into and evaluated in accordance with our
capital allocation framework.

Completion is expected towards the end of FY2026, subject to certain
regulatory approvals including Foreign Investment Review Board approval.

BHP Chief Executive Officer, Mike Henry

"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."

BHP Chief Financial Officer, Vandita Pant

"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 BHP's shareholder value."

About GIP

Global Infrastructure Partners, a part of BlackRock, is an infrastructure
investor with approximately US$189 billion in assets under management across
the energy, transport, digital infrastructure, and water and waste management
sectors. For more information, visit www.global-infra.com

 

Authorised for release by Stefanie Wilkinson, Group Company Secretary.

 

 

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 BHP Group Limited

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