BEIJING/SINGAPORE/MELBOURNE - China Baowu Steel Group, the world's largest steelmaker, is eyeing a minority stake in BHP's Jimblebar iron-ore mine in Western Australia, according to two people briefed on the matter.

Baowu is considering seeking a stake of between 15% and 25%, which would come from BHP's share of the project, according to the sources, who did not give a potential valuation or other details, and spoke anonymously given commercial sensitivity.

BHP declined to comment. Baowu did not respond to a request for comment.

No decision has been made and there is no certainty Baowu's interest will result in a transaction.

BHP owns 85% of the mine, with Japanese trading houses Itochu and Mitsui owning minority stakes. BHP described its share as worth $3.2- billion when the mine opened in 2014.

The mine produced about 62.5-million tons of iron-ore for BHP in fiscal 2026, worth about $6.2-billion at current prices. That accounted for roughly a quarter of BHP's output of the key steelmaking ingredient.

AUSTRALIA ONCE A TOP DESTINATION FOR CHINESE INVESTORS

Some bankers familiar with BHP's business questioned whether such a deal would align with the company's strategy of seeking maximum value for its ore from Chinese buyers, seen in recent dealings between the Australian miner and state buyer China Mineral Resources Group.

CMRG increasingly negotiates with miners on behalf of steel mills, and has repeatedly banned mills from buying certain products to try and win concessions from miners during contract talks.

BHP and CMRG resolved a more than six-month-long dispute in April, opening the door for steel mills to resume buying certain cargoes, including Jimblebar fines, that had been blacklisted.

Miners also tend to sell stakes in new projects to disperse risk, as opposed to well-established mines such as Jimblebar.

Baowu has partnered with Australian miners before, including via a 2022 deal with Rio Tinto to develop a $2-billion iron-ore mine also in the Pilbara region of Western Australia.

Australia was once a top destination for Chinese corporate investors, but investment has fallen for years because of national security concerns in Canberra, which has blocked Chinese acquisitions in lithium and rare earths.

China is no longer among the top ten foreign investors into Australia.