According to a report by Reuters, Chinese steel company Baowu Steel Group is considering the possibility of acquiring a minority stake in the Jimblebar iron ore mine owned by the Australian company BHP in Western Australia.
It is reported that Baowu is considering acquiring a 15-25 percent stake from BHP's existing stake, although a decision has not yet been made and there is no certainty that negotiations will lead to a deal. No potential assessment information is disclosed. BHP owns 85 percent of Jimblebar shares, while Japanese trading companies Itochu and Mitsui own the remaining minority stakes. When the mine started operating in 2014, BHP valued its stake at $3.2 billion.
Jimblebar accounts for a quarter of iron ore production BHP
In 2014, Jimblebar produced about 62.5 million tons of iron ore owned by BHP in fiscal year 2026, which is about a quarter of the total iron ore production at the mine and is estimated at $6.2 billion at current prices. BHP said it regularly explores partnership opportunities that can create long-term shareholder value, while emphasizing that its iron ore operations in Western Australia remain central to its portfolio..
The potential deal followed a dispute between BHP and CMRG.
The potential investment comes from BHP and China's state-backed Mineral Resources Group resolved a dispute that lasted more than six months in April, allowing Chinese steelmakers to resume purchases of previously banned BHP products, including fines of 0:9, as previously reported by SteelOrbis.
There are no comments yet.