Ahmedabad [India] / Perth [Australia], November 6 (ANI): Caravel Minerals Ltd (ASX: CVV) and Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, have signed a non-binding Memorandum of Understanding (MoU) to collaborate strategically on the Caravel Copper Project in Western Australia’s Murchison region. The agreement aims to fast-track the project towards a Final Investment Decision (FID) in 2026, combining Caravel’s world-class copper resources with Adani’s expertise in smelting, processing, and logistics.
Under the MoU, the companies will explore investment and offtake opportunities, including an exclusive framework for negotiating a life-of-mine offtake agreement covering up to 100% of Caravel’s copper concentrate output. The project is expected to produce between 62,000 and 71,000 tonnes of payable copper per year during the early years, feeding directly into KCL’s state-of-the-art USD 1.2 billion Kutch Copper Smelter in Gujarat, India—the world’s largest single-location copper facility.
“This collaboration with Adani’s Kutch Copper marks a pivotal step in realising the full potential of the Caravel Copper Project. It brings together complementary strengths—Adani’s downstream expertise and Caravel’s world-scale resource—under a shared vision for responsible, long-term copper production,” said Don Hyma, Managing Director of Caravel Minerals.
The Caravel Copper Project, located approximately 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. 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 grants KCL first rights to participate in direct equity or project-level investments during the agreement term. Financing discussions are underway with leading banks, targeting a package that includes Export Credit Agency (ECA)-backed solutions for Danish equipment suppliers, traditional debt, equity raises, and innovative structures such as streaming and royalties. These discussions build on a 2023 Letter of Interest from Denmark’s Export and Investment Fund for Danish-sourced equipment.
The partnership also outlines joint initiatives, including co-engineering to optimise product specifications for Kutch Copper’s downstream facilities, collaborative procurement to accelerate delivery schedules, and leveraging the India-Australia Free Trade Agreement (FTA) to support cross-border resource development and workforce skilling.
With global copper demand projected to rise by 50% by 2040 due to electrification and renewable-energy expansion, the Caravel-Kutch Copper collaboration is expected to strengthen critical minerals supply chains and support sustainable economic growth for both nations. Both companies have also demonstrated strong ESG performance, reflecting a commitment to responsible mining and sustainable operations. (ANI)
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