BHP Group Ltd (LSE:BHP, ASX:BHP) has agreed a $2 billion infrastructure deal with Global Infrastructure Partners (GIP), part of BlackRock, to help fund the inland power network that supports its vast Western Australia Iron Ore (WAIO) operations.
WAIO, of which BHP owns 85%, is made up of four joint ventures across the Pilbara. Under the agreement, a new trust will be created with BHP holding a 51% controlling stake.
GIP will contribute $2 billion for the remaining 49%. In return, BHP will pay a tariff over 25 years linked to its share of power use across WAIO.
Crucially, the miner retains full operational control of both WAIO and the power infrastructure.
The arrangement does not alter existing joint venture terms, state agreements or asset ownership. BHP said WAIO will continue to focus on lifting production to 305 million tonnes a year through targeted investment while keeping options open for further growth.
The company said proceeds from the deal will be assessed under its capital allocation framework, which prioritises balance sheet strength and disciplined investment.
Completion is expected by the end of its 2026 financial year, subject to regulatory approvals, including sign-off from Australia’s Foreign Investment Review Board.
Mike Henry, BHP’s chief executive, said the partnership gives the business access to capital “while maintaining operational and strategic control of a critical part of WAIO’s infrastructure”.
Chief financial officer Vandita Pant said the structure enhances financial flexibility and supports long-term value creation.
GIP, an infrastructure specialist, manages around $189 billion across energy, transport, digital and utilities assets.