Global mining giant BHP has secured $4.3bn (about R69bn) in a landmark deal to sell a portion of its future silver production, the biggest silver streaming agreement ever.
Under the arrangement, Wheaton Precious Metals Corp will pay BHP cash upfront in exchange for a share of the silver produced at the Antamina mine in Peru over the coming years, BHP announced on Tuesday.
The deal gives BHP immediate liquidity without adding to its debt, freeing up capital for reinvestment as it pushes to unlock more shareholder value from its existing asset base.
“We are pleased to partner with Wheaton – a global leader in precious metals streaming. BHP’s investment in Antamina has delivered value to investors through strong copper production performance, and this agreement further unlocks additional value from the asset in an innovative and disciplined way,” CEO Mike Henry said.
Antamina produces copper, zinc and silver, but silver is not a strategic priority for BHP. The company therefore opted to monetise part of its future silver output now rather than collect the revenue gradually over time. BHP said it will retain full ownership of its copper, zinc and lead production, which remain central to its long‑term portfolio.
The transaction is expected to conclude around April, with no regulatory hurdles in the way.
The silver deal is part of BHP’s wider plan to unlock more than $6bn in cash from its assets. The group said this will strengthen its finances, support future projects and increase returns for investors.
“Today, we announced the most valuable silver streaming agreement ever relating to our share of Antamina’s future silver production, which follows the agreement in December relating to our share of WAIO’s [Western Australian Iron Ore] inland power consumption,” Henry said.
“These are examples of our active approach to capital portfolio and asset management, improving our financial flexibility and unlocking value. Together, these agreements will unlock over $6bn of cash. We see the potential to unlock up to a total of $10bn.”
The deal comes as BHP refocuses on copper and other metals needed for electricity, renewable energy and future technologies. Copper is already the group’s biggest profit driver, contributing about 51% of its earnings. The group said it has increased copper production by 30% over the past four years and plans further growth. According to Henry, copper is central to the group’s future.
“We continue to prosecute our strategy of operational excellence, distinctive social value creation and growth in copper and potash. We have achieved [about] 30% growth in copper production in the last four years, positioning us ahead of the strengthening copper market that we had anticipated,” he said.
On Tuesday BHP also announced that group earnings for the six months to end-December rose to $5.7bn with revenue up 11% to $27.9bn. As a result, the group has increased shareholder payouts by 46% to 73 US cents per share.
“At a group level, we again delivered a safe, reliable half, with resilient margins and cash flows that support disciplined investment and strong shareholder returns,” said Henry.
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