Silver Wheaton Corp., which resells precious metals bought from mining companies, agreed to buy $900 million worth of gold from a Vale SA mine in Brazil, expanding a supply agreement signed two years ago. It will buy an additional 25 percent of the production from Vale’s Salobo mine in northern Brazil, bringing the total to 50 percent, Vancouver-based Silver Wheaton said in a statement Monday. It will also make ongoing payments to Rio de Janeiro- based Vale of $400 an ounce or the prevailing gold price, whichever is lower. Silver Wheaton typically offers upfront payments to help mining companies fund their operations in exchange for a discount on future silver and gold output. Expanding an agreement initially signed with Vale in February 2013 will increase the firm’s gold production by 70,000 ounces a year for the first 10 years, the company said. “The Salobo mine is one of Silver Wheaton’s cornerstone assets and we are fortunate to have the opportunity to double our gold production from this high-quality mine,� Silver Wheaton Chief Executive Officer Randy Smallwood said in the statement. “Salobo is certainly one of the best assets we have ever seen and one that readily lends itself to streaming.� Vale, the world’s largest iron-ore exporting company, boosted gold production to a record 321,000 ounces last year as it expanded operations at Salobo, where the company also mines copper. Output at the Brazilian mine grew 38 percent to 160,000 ounces of gold, Vale said Feb. 19. “The transaction unlocks value from our base metals operation and is consistent with Vale’s strategy of creating shareholder value,� the Brazilian company said in a separate statement.

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