According to an exclusive Reuters report, China Baowu Steel Group is considering purchasing a minority stake in BHP’s Jimblebar iron ore mine in Western Australia. According to two sources familiar with the matter, Baowu is interested in acquiring 15%-25% of BHP’s stake in the mine.
The sources spoke on condition of anonymity due to commercial sensitivity and did not provide any information on the potential transaction’s valuation. No decision has yet been made, and there is no certainty that Baowu’s interest will result in a transaction.
BHP: Western Australia iron ore operations remain strategically important
In a stock exchange filing following the report, BHP stated that it has maintained partnerships across its assets for many years and regularly evaluates options that could create long term value for shareholders.
The company also stated that its Western Australia Iron Ore operations remain central to its portfolio and reaffirmed its commitment to its operations in Western Australia.
Jimblebar production reaches 62.5 million mt
BHP owns 85% of the Jimblebar mine. Japanese trading companies Itochu and Mitsui hold minority stakes in the mine.
Jimblebar produced approximately 62.5 million mt of iron ore for BHP in fiscal 2026. Based on current prices, the value of this production is estimated at approximately USD 6.2 billion, while the mine accounts for around one quarter of BHP’s total iron ore production.
When the mine commenced operations in 2014, BHP valued its stake at USD 3.2 billion.
Baowu’s partnerships in Australia
Baowu has previously established partnerships with Australian mining companies. In 2022, the company reached an agreement with Rio Tinto to develop a USD 2 billion iron ore mine in Western Australia’s Pilbara region.
According to Reuters, a potential Jimblebar transaction is also significant in the context of BHP’s recent commercial relations with Chinese buyers. The more than six month dispute between BHP and China’s state backed China Mineral Resources Group (CMRG) was resolved in April, allowing steelmakers to resume purchases of some previously restricted cargoes, including Jimblebar fines.
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