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Baowu weighs minority stake in BHP’s Jimblebar iron ore mine
Baowu is considering a 15% to 25% interest in Jimblebar, a mine that produced about 62.5 million tonnes in fiscal 2026 and represents roughly a quarter of BHP’s iron ore output.
China Baowu Steel Group is considering buying a minority stake in BHP’s Jimblebar iron ore mine in Western Australia, Reuters reported, citing two sources. The deal would deepen Baowu’s direct involvement in one of BHP’s largest iron ore operations, while giving Baowu closer access to the raw material used to make steel.
The potential interest being weighed is in the 15% to 25% range, according to the report. Jimblebar produced about 62.5 million tonnes of iron ore in fiscal 2026, roughly a quarter of BHP’s total iron ore output, with BHP holding 85% of the mine and Itochu and Mitsui each holding minority interests.
Jimblebar was valued at about $3.2 billion when it opened in 2014, and the operation produces ore worth about $6.2 billion at current prices, Reuters added. Baowu has expressed interest but has not made a decision, and there is no certainty that talks will lead to a transaction.
The potential investment also comes amid increased scrutiny of Chinese investment in Australia for strategically important resources. Reuters noted that the consideration follows a resolution between BHP and China Mineral Resources Group in April that cleared the way for Chinese steel mills to resume purchases of some BHP iron ore cargoes that had been blacklisted, and that BHP and Baowu already collaborate on steelmaking emissions reduction trials using BHP’s Pilbara iron ores.