Adani's Kutch Copper, Caravel Minerals sign MoU for Australian copper project

New Delhi, Nov 6 (PTI) Adani Group's Kutch Copper Ltd has signed an agreement with Australia's Caravel Minerals Ltd for collaboration on the Caravel Copper Project in Western Australia's Yigarn Terrane region.

The non-binding memorandum of understanding (MoU) between Adani Enterprises' subsidiary Kutch Copper Ltd (KCL) and Caravel Minerals Ltd provides a framework for investment cooperation and a potential life-of-mine offtake agreement, covering up to 100 per cent of the project's copper concentrate output - estimated at 62,000-71,000 tonnes of payable copper annually in the initial years, the Adani group said in a statement.

The concentrate is expected to supply Kutch Copper's USD 1.2 billion Kutch smelter in Gujarat, billed as the world's largest single-location copper facility.

Caravel's project, with a projected capital cost of AUD 1.7 billion and an all-in sustaining cost of USD 2.07 per pound, targets a final investment decision in 2026. Kutch Copper will have first rights to participate in project-level or direct equity investments during the MoU term.

"Under the MoU, the companies will explore investment and offtake opportunities to accelerate development of the Project towards a Final Investment Decision (FID) in 2026, combining Caravel's world-class resource with Adani's proven smelting, processing and logistics capabilities," the statement said.

The companies will also explore co-engineering, joint procurement, and other collaborative workstreams to optimise project timelines and specifications. Financing talks are underway with global banks and export credit agencies, including Denmark’s Export and Investment Fund (EIFO), to structure a mix of debt, equity, and streaming-based funding.

Adani Natural Resources CEO Vinay Prakash said the partnership will strengthen India-Australia cooperation in building resilient copper supply chains to support the global energy transition.

Caravel Managing Director Don Hyma called the tie-up "a pivotal step" in advancing one of Australia's largest undeveloped copper resources.

With a projected mine life exceeding 25 years and total payable copper of about 1.3 million tonnes, the Caravel project aims to position both nations as key players in the global green-metals transition.

Caravel's Caravel Copper Project, located about 150 km northeast of Perth, is one of Australia's largest undeveloped copper resources, with a potential mine life exceeding 25 years and an estimated 1.3 million tonnes of payable copper, it said, adding that the project's all-in sustaining cost (AISC) is forecast at USD 2.07 per pound, positioning it among the lowest-cost producers globally.

"The MoU further outlines collaborative workstreams, including co-engineering to optimise product specifications for Kutch Copper’s downstream facilities, joint procurement to fast-track delivery schedules and leveraging the India-Australia FTA (Free Trade Agreement) to promote cross-border resource development and workforce skilling," the statement said.

With global copper demand projected to surge by 50 per cent by 2040 amid electrification and renewable-energy expansion, the Caravel-Kutch Copper collaboration is poised to deliver a significant contribution to critical minerals supply chains while unlocking sustainable economic growth for both nations.

Both companies have also recorded exemplary ESG performance, reinforcing their shared commitment to responsible mining and sustainable supply chains. PTI ANZ BAL BAL