BHP brings in BlackRock's GIP as $2bn partner on WAIO inland power assets

The deal would see the creation of a new trust entity, 51% owned and controlled by BHP, with GIP taking a 49% stake. GIP would inject $2-billion into the entity, while BHP would pay a tariff over 25 years linked to its share of WAIO’s inland power use.

CEO Mike Henry said the structure allowed the miner to bring in long-term capital without relinquishing control of critical infrastructure. “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 company stressed that the agreement did not alter existing joint venture (JV) arrangements, obligations to the state of Western Australia, or the ownership of any WAIO assets, including the inland power network.

WAIO, which spans four major iron-ore JVs in the Pilbara, is targeting a production increase to 305-million tonnes a year supported by focused investment and future growth optionality.

“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," commented CFO Vandita Pant.

Completion is expected towards the end of the 2026 financial year, subject to regulatory approvals, including clearance from the Foreign Investment Review Board.

GIP, now operating under the BlackRock banner following, manages about $189-billion of assets across energy, transport, digital infrastructure, and water and waste sectors.