China Baowu eyes stake in BHP’s Jimblebar iron ore mine

China Baowu Steel Group is considering acquiring a minority stake of between 15% and 25% in BHP’s Jimblebar iron ore mine located in Western Australia. The potential investment would give the world’s largest steelmaker a direct interest in a major source of raw materials used for construction and automotive industries.

Jimblebar is a significant asset, producing approximately 62.5 million tonnes of iron ore during BHP’s 2026 financial year, which accounts for roughly a quarter of the company’s total iron ore output. While Baowu has expressed interest, no formal offer has been announced, and there is no certainty that a transaction will occur. BHP has stated it regularly considers options for long-term value but remains committed to its Western Australian operations.

The move follows Baowu’s recent expansion in Guinea, where its subsidiary, Baowu Resources, increased its ownership of Winning Consortium Simandou to 51%. This gave the company control over the northern half of the Simandou development. An investment in Jimblebar would complement Baowu’s interests by providing exposure to an established Australian mine alongside the developing Simandou project.