BHP strikes $2bn infrastructure funding deal with GIP for WAIO power network

BHP Group said on Tuesday that BlackRock-owned Global Infrastructure Fund (GIP) would invest $2 billion in Western Australia Iron Ore’s (WAIO) inland power network for a minority stake.

The two firms will form an entity in which BHP will hold a 51% stake and GIP the remaining 49% stake.

BHP will pay the entity a tariff linked to its share of WAIO’s inland power over a 25-year period.

BHP, the world’s largest listed miner, will retain full operational control of WAIO, including its inland power infrastructure.

The agreement with GIP will not affect BHP’s existing joint venture agreements, the Australian company said in a statement.