BlackRock stakes a $3b claim in WAIO

BHP (ASX: BHP) has entered a binding agreement with Global Infrastructure Partners (GIP), in relation to the miner’s share of WA Iron Ore’s (WAIO) inland power network.

Currently, BHP holds an 85% interest in WAIO. Under the agreement, an entity will be formed to split this interest with BHP controlling 51% and GIP holding the remaining 49%.

BHP will pay the entity a tariff linked to its share of WAIO’s inland power across a 25-year period. BHP retains full operational control of WAIO including its inland power structure.

BHP chief executive Mike Henry says he is pleased with the agreement.

“This arrangement enables BHP to access capital and maintain operational and strategic control of a critical part of WAIO’s infrastructure,” he said.

BHP chief financial officer Vandita Pant comments on the agreement.

“This arrangement is an example of BHP’s disciplined approach to capital portfolio management,” she said.

“It strengthens our balance sheet flexibility, supports long-term value creation and enhances BHP’s shareholder value.”

Completion is expected by the end of FY26 subject to Foreign Investment Review Board approval.

WAIO will continue to update its long-term strategy that is focused on increasing iron ore production to 305mtpa as well as retaining optionality for future growth