This article first appeared on GuruFocus.

Investors are watching BHP Group (NYSE:BHP) reposition itself for a new phase of capital deployment as the miner accelerates the monetization of non-core infrastructure. BHP has agreed to sell a $2 billion stake in the electricity network that powers its Pilbara iron ore operations, transferring almost half of its existing 85 percent ownership to Global Infrastructure Partners, the infrastructure arm of BlackRock. The proceeds will be redeployed into higher-priority growth areas, with BHP continuing to pay a tariff based on its remaining stake for 25 years. The move follows an earlier signal from BHP in August that it intended to recycle capital through targeted divestments, with analysts suggesting this could be the start of a broader capital-efficient optimization program.

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Operational leadership remains intact. BHP will continue to oversee the entire network, which includes the Yarnima gas-fired power station and over 400 kilometers of transmission lines and substations, with the deal expected to close next year. CEO Mike Henry said the agreement enables BHP to access new capital while retaining full strategic and operational control of the assets. Shares slipped 0.4 percent to A$44.30 in Sydney on Tuesday. The plan mirrors a wider shift among major miners, where Rio Tinto has announced a plan to release between $5 billion and $10 billion from divestments, funded partly by the sale of its titanium and borates business and additional infrastructure that it uses but no longer needs to own.

The recycling effort is being positioned around one central goal: expanding long-life growth in copper, potash and iron ore. BHP is planning around $10 billion of annual capital expenditure for the rest of this decade, including $13 billion over the next 10 years to maintain production from its Chilean copper operations and heavy investment into its Canadian potash development. Copper demand is projected to increase by about 70 percent over the next two decades, driven by the shift toward lower-carbon energy and the growing requirements of data centers. The outlook has intensified BHP's pursuit of scale in copper, culminating in two unsuccessful takeover attempts for Anglo American last month, with the latest approach reportedly valued at around 40 billion. Investors could view the current divestment strategy as an early sign that BHP is preparing to channel capital into its highest-conviction growth opportunities while keeping balance-sheet discipline intact.