BHP Secures $4.3 Billion in Silver Streaming Deal with Wheaton Precious Metals
BHP Group has entered into a long-term silver streaming agreement with Wheaton Precious Metals International Ltd., a subsidiary of Wheaton Precious Metals Corp., for an upfront payment of $4.3 billion. The agreement centers around BHP’s 33.75% share of silver production at the Antamina mine in Peru.
Details of the Agreement
Under the terms of the agreement, Wheaton Precious Metals will receive the equivalent of 33.75% of the silver produced by Antamina, subject to a fixed payable rate of 90%. After 100 million ounces of silver have been delivered, the stream will be reduced to 22.5% of Antamina’s silver production for the remaining life of the mine. Settlement will be completed via metals credits, with no physical delivery of silver to Wheaton. Wheaton will also pay BHP 20% of the spot silver price at the time of delivery for each ounce of silver.
Strategic Rationale for BHP
BHP Chief Executive Officer, Mike Henry, stated the partnership with Wheaton, a global leader in precious metals streaming, will unlock additional value from the Antamina asset. BHP Chief Financial Officer, Vandita Pant, highlighted the transaction as an example of active capital management, noting the $4.3 billion upfront consideration favorably compares to consensus estimates of BHP’s entire share of Antamina. Combined with a recent transaction with Global Infrastructure Group, BHP expects to unlock over $6 billion in cash.
Impact and Benefits for BHP
- Capital Allocation: The deal allows BHP to reallocate capital from a non-core commodity (silver) to high-return growth projects and shareholder returns.
- Balance Sheet: The transaction is not expected to increase BHP’s reported debt levels.
- Asset Value: BHP will retain full exposure to copper, zinc, and lead production from its share of the Antamina mine.
- Maximizing Shareholder Value: The agreement represents the most valuable streaming transaction to date based on the upfront consideration received.
About the Antamina Mine
The Antamina mine is a large copper and zinc mine located 270 kilometers north of Lima, Peru. It is operated independently by Compañía Minera Antamina S.A. (CMA). Shareholders of CMA include BHP (33.75%), Glencore plc (33.75%), Teck Resources Limited (22.5%), and Mitsubishi Corporation (10%). In 2025, Antamina produced 124,200 tonnes of copper, 129,400 tonnes of zinc, and 5.4 million ounces of silver (on a BHP share basis).
What is a Precious Metal Stream?
A stream is a long-term contract where a purchaser, like Wheaton Precious Metals, provides an upfront payment to a mine owner, like BHP, in exchange for the right to receive a percentage of future precious metal production. Ongoing payments are typically based on the spot price of the metal. Streams do not impose fixed delivery obligations and do not affect the mine’s operations.
Transaction Timeline and Completion
The agreement has an effective date of April 1, 2026, and completion is expected around the same time. Completion is not subject to regulatory approvals, only standard corporate matters and closing conditions.
Advisors
BMO Capital Markets is acting as financial advisor to BHP, and Davies Ward Phillips &. Vineberg LLP is serving as legal counsel.
Source: Wheaton Precious Metals
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