BHP Group (LSE:BHP) has reached an agreement to divest a 49% interest in the inland power network that supports its Western Australia iron ore operations, with BlackRock’s Global Infrastructure Partners set to acquire the stake for $2 billion.

As part of the deal, a new trust structure will be created to house the power assets, while BHP will keep a 51% controlling interest. The miner will pay the trust a tariff tied to its share of Western Australia Iron Ore’s (WAIO) power usage over a 25-year term.

Chief Executive Mike Henry said the transaction “enables BHP to access capital and maintain operational and strategic control of a critical part of WAIO’s infrastructure.”

The move comes as the world’s largest mining company by market value looks to unlock capital to support increased investment in copper growth projects and its expansion into potash.

BHP’s WAIO division—of which the company owns 85%—is among the top global producers of iron ore, a vital raw material for steelmaking.

The agreement remains subject to regulatory approval and is expected to close toward the end of BHP’s 2026 fiscal year, which ends on June 30, 2026.

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