Mining giant BHP (ASX: BHP) is preparing to sell about $1.5 billion worth of power transmission assets in Chile as the world’s largest miner sharpens its focus on copper and other core commodities.
The plan is to divest roughly 1,000 km of transmission lines that supply electricity to its Escondida, Spence and Cerro Colorado operations, according to Chilean newspaper Diario Financiero, which cited sources familiar with the process.
The transaction could be completed as early as this year, though key details including the sale structure and buyer selection remain under review. BHP did not immediately respond to requests for comment.
It makes sense for BHP to divest the assets and focus on its core business, a person with knowledge of the matter told Diario Financiero, noting the company’s increasing emphasis on copper.
Broader shift
The potential sale highlights a broader strategic shift underway at BHP as demand forecasts for copper strengthen amid electrification and energy transition trends.
Infrastructure assets linked to major mining operations offer investors stable, long-term demand, making them attractive targets for transmission companies, energy firms and institutional investors seeking predictable returns.
The Chile transaction would follow BHP’s sale of a 49% stake in power transmission assets connected to its Australian iron ore operations to Global Infrastructure Partners, a BlackRock subsidiary, for $2 billion last year.
The company has spent recent years streamlining its portfolio around commodities expected to benefit from long-term structural demand growth, including copper and potash.
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