BHP Sells 49% Stake in Pilbara Power Network to BlackRock’s GIP in $2 Billion Deal
BHP Group has agreed to sell nearly half of its ownership in the inland power network that services its Western Australia Iron Ore (WAIO) operations to Global Infrastructure Partners (GIP), an investment arm of BlackRock. The $2 billion transaction marks a significant step in BHP’s broader strategy to redirect capital into high-growth commodities such as copper and potash, while retaining operational control over critical infrastructure.
The announcement was made on December 9 morning, outlining how GIP will acquire a 49 percent stake in BHP’s holding within the power assets, while BHP continues to manage and oversee the full system.
Structure of the Deal
BHP Retains Control While Accessing Capital
Under the agreement, BHP will establish a new trust entity that it will own 51 percent of, maintaining strategic and operational authority. GIP will provide $2 billion in funding for its 49 percent share, giving BHP the ability to access capital without relinquishing oversight of vital energy infrastructure.
BHP will pay the entity a tariff over a 25-year period, linked to its proportional use of WAIO’s inland power. This structure ensures long-term energy reliability for the miner’s operations, while enabling financial flexibility for diversification efforts.
Assets Included in the Transaction
The deal covers WAIO’s inland energy network, which features the Yarnima gas-fired power station, more than 400 kilometres of transmission lines, and a series of substations supporting one of the world’s largest iron ore supply chains. Despite the transaction, BHP emphasised that ownership of WAIO’s broader infrastructure remains unchanged, and the agreement does not modify existing joint venture arrangements or obligations to the State of Western Australia.
BHP’s decision aligns with a wider trend among global miners seeking to sell down infrastructure assets and redeploy capital into commodities expected to drive long-term demand growth. BHP first floated the idea of partially divesting its Pilbara energy system in August, describing it as part of a broader plan to recycle capital into projects with stronger future returns.
WAIO’s Growth Roadmap Remains Unchanged
WAIO, one of BHP’s flagship divisions, comprises four major joint ventures in the Pilbara region, of which BHP owns 85 percent. The division will continue its plan to lift output to 305 million tonnes annually through targeted investments and operational optimization. The miner reaffirmed that full control over WAIO’s power network ensures continuity as it advances long-term production and electrification goals.
CEO Mike Henry: Partnership Strengthens Strategic Control
BHP Chief Executive Officer Mike Henry said the transaction strikes a balance between capital release and operational stability. “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,” Henry stated. The agreement remains subject to regulatory approvals, including from Australia’s Foreign Investment Review Board. Completion is targeted towards the end of FY-2026.
About GIP
Global Infrastructure Partners, now part of BlackRock, manages approximately $189 billion in assets across energy, transport, digital infrastructure, and water sectors. The investment reinforces its position as a major global player in long-term infrastructure financing.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
