BHP Brings in Blackrock’s GIP as $2BN Partner on WAIO Inland Power Assets

Wedoany.com Report-Dec.9, BHP has reached an agreement with Global Infrastructure Partners (GIP), a BlackRock company, to establish a new funding structure for the inland power transmission network that serves its Western Australia Iron Ore (WAIO) operations in the Pilbara region.

The inland power network supplies BHP's Western Australia Iron Ore unit, which comprises several major iron-ore joint ventures.

Under the arrangement announced on Tuesday, a new trust entity will be formed with BHP retaining 51% ownership and full operational control. GIP will acquire a 49% interest and provide approximately US$2 billion in capital. In return, BHP will pay a usage-based tariff over 25 years proportional to WAIO's consumption from the network.

BHP CEO Mike Henry stated: "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."

The transaction does not affect existing joint-venture agreements, state obligations, or underlying asset ownership. The inland power system will continue to be operated and maintained by BHP.

Chief Financial Officer 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 BHP's shareholder value."

The structure supports WAIO's growth plans, which target annual iron-ore production of 305 million tonnes through sustained investment and future expansion options.

Subject to regulatory approvals, including review by Australia's Foreign Investment Review Board, the transaction is expected to close towards the end of BHP's 2026 financial year.

GIP, part of BlackRock, manages approximately US$189 billion in assets across energy, transport, digital infrastructure, water and waste sectors globally. The partnership provides BHP with long-term, non-dilutive funding while preserving full management of one of its key Pilbara infrastructure corridors.