According to a Reuters report, Chinese steelmaker Baowu Steel Group is considering acquiring a minority stake in Australia-based miner BHP's Jimblebar iron ore mine in Western Australia.
Baowu is reportedly evaluating the acquisition of a 15-25 percent interest from BHP's existing shareholding, although no decision has been made and there is no certainty that the discussions will result in a transaction. No potential valuation has been disclosed. BHP owns 85 percent of Jimblebar, while Japanese trading companies Itochu and Mitsui hold the remaining minority stakes. When the mine started operations in 2014, BHP valued its interest at $3.2 billion.
Jimblebar accounts for quarter of BHP's iron ore output
Jimblebar produced approximately 62.5 million mt of iron ore attributable to BHP in the fiscal year 2026, representing around one-quarter of the miner's total iron ore production and carrying an estimated value of $6.2 billion at current prices. BHP stated that it regularly examines partnership opportunities capable of creating long-term shareholder value, while emphasizing that its Western Australian Iron Ore operations remain central to its portfolio.
Potential deal follows BHP-CMRG dispute
The potential investment comes after BHP and state-backed China Mineral Resources Group resolved a dispute lasting more than six months in April, allowing Chinese steelmakers to resume purchases of previously restricted BHP products, including Jimblebar fines, as previously reported by SteelOrbis.
