Mining giant BHP has announced plans to sell a portion of its 85% stake in a key power network that supplies its iron ore operations in Australia. The sale is valued at approximately $2 billion and is part of BHP’s broader strategy to optimize its asset portfolio and focus on core operations.
The network in question provides vital electricity to BHP’s iron ore facilities, and the sale will involve BlackRock’s Global Infrastructure Partners (GIP), which is set to acquire the stake. The deal underscores ongoing interest from investment firms in infrastructure assets associated with resource companies, particularly in Australia’s robust mining sector.
BHP indicated that the transaction is expected to be finalized in the coming months, with the company emphasizing that it will continue to maintain operational control over the network following the sale. The move comes amid a broader industry trend of resource companies divesting infrastructure assets to free up capital and reduce operational risks.
The sale reflects BHP’s strategic efforts to streamline its assets while generating cash for investment in its core businesses and growth initiatives. BlackRock’s GIP, known for infrastructure investments worldwide, aims to expand its portfolio within the resource sector through this acquisition.