Caravel Minerals and Adani Cooperate to Propel WA Copper Project Forward

Caravel Minerals Ltd has signed a non-binding MoU with Adani's Kutch Copper Ltd to accelerate the Caravel Copper Project in Western Australia's Murchison region. The partnership aims to combine Caravel's copper resources with Adani's processing expertise, targeting a Final Investment Decision by 2026.

Caravel Minerals Ltd (ASX:CVV) has entered into a non-binding Memorandum of Understanding (MoU) with Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, to propel the flagship Caravel Copper Project in Western Australia's Murchison region. The agreement sets a strategic pathway for investment and offtake opportunities, aiming for a Final Investment Decision by 2026.

The collaboration includes negotiating a life-of-mine offtake deal for up to 100% of Caravel's copper concentrate output, anticipated to produce 62,000 to 71,000 tonnes of payable copper per annum initially. The concentrate will supply KCL's advanced USD 1.2 billion smelter in Gujarat, India, the world's largest single-location copper processing facility. 'Teaming up with Adani's Kutch Copper is crucial for maximizing the Caravel Copper Project's potential, blending Adani's downstream prowess with our resource strength under a vision for responsible, long-term production,' said Don Hyma, Managing Director of Caravel Minerals Limited.

Situated roughly 150 km northeast of Perth, Caravel's Caravel Copper Project is one of Australia's largest undeveloped copper resources, boasting a 25-year plus mine life and around 1.3 million tonnes of payable copper. The project's all-in sustaining cost is projected at USD 2.07 per pound, making it one of the world's lowest-cost producers.

KCL has been granted preferential rights in direct equity or project-level investments as part of the MoU, aligning with a AUD 1.7 billion initial capital expenditure to aid phased development. Financing strategies include talks with leading banks for a robust financial package involving Danish Export Credit Agency (ECA) support for equipment, alongside debt, equity, and innovative funding structures like streaming and royalties.

The MoU specifies joint workstreams such as co-engineering, procurement coordination, and leveraging the India-Australia Free Trade Agreement to enhance cross-border development and skilling. With global copper demand expected to jump 50% by 2040 due to electrification and renewable-energy growth, the collaboration aims to significantly impact critical mineral supply chains while fostering sustainable economic growth for both nations.

The companies emphasize their commitment to exemplary Environmental, Social, and Governance (ESG) standards, reinforcing shared values in responsible mining and sustainable supply chains.

(With inputs from agencies.)