BHP Signs $4.3 Billion Silver Deal With Wheaton
Synopsis
BHP Group has completed a record $4.3 billion silver streaming transaction with Wheaton Precious Metals, the biggest upfront payment ever in the mining industry. The deal centres on silver production from the Antamina mine in Peru, a project 33.75%-owned by BHP. Monetising the silver by-product should allow BHP to redirect capital towards higher growth commodities, such as copper and potash. Effective from April 2026 and in exchange for one-off payments to BHP, the deal gives BHP substantial non-dilutive funding while securing Wheaton with a long-term stream of silver supply for industrial and investment demand.
BHP has signed a world-class $4.3 billion silver streaming deal with Wheaton Precious Metals. BHP is generating immediate capital without adding to its debt by selling future silver production from its 33.75% interest in the Antamina mine in Peru. The company is to use the proceeds for high-return, growth sectors, including copper and potash.
- BHP gets a $4.3 billion upfront payment in the biggest-ever silver streaming deal
- The contract applies to silver from the Antamina mine in Peru
- Money to be reinvested in thriving projects such as copper and potash
- BHP retains all its key copper and zinc assets
The BHP Group has entered into a blockbuster $4.3 billion deal to sell its future silver output from the Antamina mine in Peru to Wheaton Precious Metals. This deal is the largest in history. Under the deal, BHP receives a large cash payment in exchange for delivering silver credits to Wheaton over several years. The switch will enable BHP to extract an immediate value from a by-product metal produced as a byproduct of mining more valuable materials, such as copper.
The Antamina mine in the remote Peruvian Andes is one of the world’s largest producers of copper and zinc. About a third of the mine is owned by BHP, and while it contains silver, that metal isn’t the company’s primary focus. By selling off such rights to all of this silver, BHP will be able to take billions in cash and sink it into growth projects that the company thinks would generate superior longer-term returns, things like its enormous Jansen potash project in Canada or its growing copper mines.
The deal is a big win for Wheaton Precious Metals. Silver has grown increasingly precious for industrial applications like solar panels and electronics, further lending itself to a store of value that’s possible to lock in at stable prices. Wheaton’s CEO added that really good silver is becoming more scarce and by locking in a large supply from a proven, low-cost mine like Antamina they’re adding strategic content to their portfolio.
Investors cheered the news, as the deal makes no further additions to BHP’s balance sheet. Instead, it offers a non-dilutive means of raising money, the company doesn’t have to sell new shares or borrow from a bank in order to get the capital it needs. And this parsimonious approach to spending is fast becoming the theme of BHP’s new style under the current leadership.
The pact is expected to officially start on April 1, 2026. Up to 100m oz of silver will be delivered by BHP from its stake in the mine equivalent to approximately 33.75% of the silver produced. After that, the rate falls to 22.5% for the rest of the mine’s life. This arrangement is designed to ensure that BHP still earns a profit in case the mine life turns out longer than expected, while at the same time providing Wheaton with a predictable flow of precious metals.
This deal reflects a larger trend in the mining industry, with behemoth companies monetising their smaller assets to finance the transition into green energy materials. By selling out, BHP is gearing up to be the metal king of the global electric vehicle and renewable energy revolution.
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