Mining giant BHP has made headlines by finalizing one of the largest precious metals streaming transactions in history. On April 2, 2026, the company announced the completion of a long-term silver streaming agreement with Wheaton Precious Metals, securing an impressive upfront payment of US$4.3 billion.
BHP Converts Silver Into Billions Without Selling the Mine
The silver streaming agreement allows BHP to monetize its silver production without relinquishing ownership of the Antamina mine. Under the terms of the deal, BHP will deliver 33.75% of the silver produced at Antamina to Wheaton, subject to a fixed payable rate of 90%. After the delivery of 100 million ounces of silver, the stream will reduce to 22.5% for the remaining life of the mine.
Wheaton will compensate BHP with ongoing production transfer payments at 20% of the spot silver price for each ounce delivered. Notably, the settlement will occur via metal credits, eliminating the need for physical silver delivery. This innovative structure allows BHP to transform a byproduct metal into immediate capital while maintaining its core copper and zinc exposure at Antamina.
What Is the Antamina Mine?
Located approximately 270 kilometers north of Lima, Peru, the Antamina mine is one of the largest copper-zinc operations globally. Jointly owned by BHP, Glencore, Teck Resources, and Mitsubishi, BHP and Glencore each hold a 33.75% interest, while Teck owns 22.5% and Mitsubishi holds 10%.
In the 2025 calendar year, BHP’s share of production from Antamina included 124,200 tonnes of copper, 129,400 tonnes of zinc, and 5.4 million ounces of silver. Given that silver is a byproduct at Antamina, this streaming agreement enables BHP to unlock capital without sacrificing its primary revenue streams from copper and zinc.
Why BHP Did This Deal
This transaction is not a distressed sale; rather, it represents a strategic move by BHP to monetize its silver production while retaining full exposure to copper, zinc, and lead from its stake in Antamina. The US$4.3 billion silver-streaming agreement enhances BHP’s capital flexibility without incurring additional debt.
Management has indicated that the proceeds will support various copper expansion initiatives, including projects at Escondida and within Copper South Australia, as well as the Vicuna joint venture. This aligns with BHP’s broader strategy to position copper as a core growth pillar, especially in light of increasing demand driven by the energy transition.
What Wheaton Precious Metals Gets
For Wheaton, this deal marks a significant expansion of its portfolio. Upon closing, Wheaton will control 67.5% of all silver produced from Antamina, a substantial increase from the 33.75% previously delivered under the existing Glencore silver stream. This new agreement is expected to boost Wheaton’s 2026 production by 11.3% on a pro forma basis.
The US$4.3 billion investment represents only 6.5% of Wheaton’s total market capitalization, highlighting its strategic fit within the company’s overall portfolio. The incremental exposure to Antamina will enhance Wheaton’s total estimated proven and probable silver reserves by 66 million ounces, measured and indicated silver resources by 38 million ounces, and inferred silver resources by 110 million ounces. By 2030, Antamina is projected to contribute approximately 18% of Wheaton’s total gold equivalent production, solidifying its status as the company’s second-largest asset.
What This Means for the Silver Streaming Market
While silver streaming is not a new concept—Wheaton is often credited with pioneering this financing model—deals of this magnitude are rare. The US$4.3 billion transaction sets a new benchmark for the industry, signaling that major diversified miners are increasingly willing to part with byproduct metals to accelerate their core strategies, particularly as copper demand rises in the context of the energy transition.
Frequently Asked Questions
Q: What is the BHP silver streaming agreement with Wheaton Precious Metals?
A: BHP finalized a long-term silver streaming deal with Wheaton on April 2, 2026, receiving US$4.3 billion upfront in exchange for delivering silver from its share of production at the Antamina mine in Peru.
Q: How does the silver streaming deal work?
A: BHP will deliver silver credits equivalent to 33.75% of Antamina’s output to Wheaton until 100 million ounces are reached. After that, the delivery rate drops to 22.5% for the mine’s remaining life. Wheaton pays 20% of the spot silver price per ounce on an ongoing basis.
Q: Why did BHP enter a silver streaming agreement?
A: Silver is a byproduct at Antamina. By streaming it, BHP converts future byproduct output into US$4.3 billion in immediate capital without losing any copper or zinc exposure. The proceeds are expected to support copper expansion projects.
Q: What does Wheaton Precious Metals gain from the deal?
A: Wheaton now controls 67.5% of all silver from Antamina, combining this new stream with its existing agreement tied to Glencore’s interest. The deal adds significant silver reserves and is expected to lift Wheaton’s 2026 production by 11.3% on a pro forma basis.
Q: Does the deal affect Antamina’s other shareholders?
A: No, the Compañía Minera Antamina joint venture is not a party to the streaming agreement. BHP’s rights as a shareholder and obligations within the joint venture remain unchanged.
Conclusion
BHP’s landmark silver streaming deal with Wheaton Precious Metals not only underscores the evolving landscape of the mining industry but also highlights the strategic maneuvers companies are willing to undertake to optimize their portfolios. As the demand for copper and other critical minerals continues to rise, such innovative financing structures will likely play an increasingly vital role in shaping the future of mining operations worldwide.
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