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Team Veye   January 14, 2026

Commodity prices impact drives ASX Blue chip stock BHP higher

Team Veye   January 14, 2026
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BHP's smart infrastructure monetization, FY25 records and copper/potash pipeline amid global commodity provide favourable tailwinds to this diversified mining leader

BHP Group Limited (ASX: BHP)

BHP Group Limited on 9 December 2025 has announced a landmark US$2B infrastructure deal with Global Infrastructure Partners (GIP, part of BlackRock) for its Western Australia Iron Ore (WAIO) inland power network, unlocking capital while retaining full operational control. This binding agreement covers BHP's 85% WAIO stake via a 51% controlled trust entity with GIP taking 49% for 25 year tariffs linked to power usage. This will support a production ramp to 305 million tonnes per annum iron ore. 

Alongside this, FY2025 results has reported record WAIO output and copper production (up 28% over three years, top global growth) with 20.6% return on capital, 53% EBITDA margin, $5.6B USD dividends (60% payout) and $47B economic contributions.
Balance sheet flexibility has improved via net proceeds under BHP's capital framework, with no changes to JVs, WA State obligations or asset ownership. 

Over the past decade, BHP has returned over US$100B  to shareholders through dividends and buybacks underscoring consistent value delivery. Jansen potash Stage 1 in Canada is advancing to first production by mid 2027, and it will complement the copper growth in South Australia, Chile, Argentina's Vicuña JV and Arizona's Resolution (potential 25% of US copper needs).

Demand is surging from urbanization, copper intensive energy transition, potash for sustainable food. and AI/data center growth. Competitive policies in US, Canada, Argentina and Australia also help with project acceleration. BHP's disciplined allocation, operational excellence and social value creation enable cycle-resilient growth and shareholder returns.

(Source: Company Announcements)

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