Silver Wheaton (Caymans) (SWC) has signed an agreement to purchase silver produced at Peru’s Antamina mine from Glencore’s wholly owned subsidiary Anani Investments for $900m.

SWC said it will pay 20% of spot price per silver ounce delivered under the streaming agreement.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to the agreement, SWC will gain an amount equal to 33.75% of the Antamina silver production from Glencore until the delivery of 140 million ounces, and 22.5% of output after then for the rest of mine life at a fixed 100% payable rate.

SWC president and CEO Randy Smallwood said: "Antamina has both the quality and the scale to make it an ideal addition to this portfolio, as it is not only the eighth largest copper mine in the world, but it is also one of the lowest cost.

"This transaction provides almost immediate production and operating cash-flow from a proven and well-established asset."

"This transaction not only further strengthens our relationship with Glencore, but also provides almost immediate production and operating cash-flow from a proven and well-established asset."

The transaction is expected to close before the end of November and forms part of Glencore’s debt reduction plans announced in September.

Antamina is a copper and zinc mine in the Andes mountain range, 270km north of Lima, Peru, and began production in 2001.

The mine is operated by Compania Miñera Antamina (CMA), which is jointly owned by subsidiaries of Glencore (33.75%), BHP Billiton (33.75%), Teck Resources (22.5%), and Mitsubishi (10%).

The open-pit mine produces separate copper, zinc, molybdenum and lead/bismuth concentrates.

Image: The tailings pond of the Antamina Tailings Dam at the Atamina Dam in Peru. Photo: courtesy of Xtremizta / Flickr / Wikipedia.