Kutch Copper, a subsidiary of Adani Enterprises, has inked a non-binding MoU with Australia’s Caravel Minerals on Thursday that would pave the way for a strategic collaboration on the flagship Caravel Copper Project in Western Australia’s Murchison region.

According to the terms of the MoU, the companies will explore investment and offtake opportunities to accelerate development of the Project towards a Final Investment Decision (FID) in 2026.

The partnership also establishes an exclusive framework for negotiating a life-of-mine offtake agreement covering up to 100% of Caravel’s copper concentrate output, which is expected to be around 62,000 to 71,000 tonnes of payable copper per annum in the early years. The concentrate would directly feed into Kutch Copper’s state-of-the-art $1.2 billion (AUD 1.8 billion) Kutch Copper Smelter, the world’s largest single-location copper facility, set up in Gujarat, India.

“Copper is the backbone of the global energy transition, and our partnership with Caravel Minerals strengthens India’s and Australia’s role in building a resilient and responsible supply chain for this vital metal,” said Dr Vinay Prakash, CEO, Natural Resources, Adani, in a statement.

“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, Caravel Minerals Limited, in a statement.

As part of the agreement, Kutch Copper has been granted first rights to participate in direct equity or project-level investments during the term of the MOU. The discussions align with the Project’s AUD 1.7 billion initial capex and are designed to support phased development.

Financing discussions are also advancing with top-tier banks, targeting a robust package that includes Export Credit Agency (ECA)-backed solutions for Danish equipment suppliers, traditional debt, equity raises and innovative funding structures such as streaming and royalties. These efforts build on a 2023 Letter of Interest from Denmark’s Export and Investment Fund (EIFO) for Danish-sourced equipment.

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 Free Trade Agreement to promote cross-border resource development and workforce skilling.

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. The project’s all-in sustaining cost (AISC) is forecast at $2.07 per pound, positioning it among the lowest-cost producers globally.