Wedoany.com Report-Nov. 8, Caravel Minerals, an ASX-listed company, has entered into a nonbinding memorandum of understanding (MoU) with Kutch Copper, a subsidiary of Adani Enterprises, to advance the Caravel copper project in Western Australia. The partnership aims to move the project toward a final investment decision, which is targeted for 2026.

According to the MoU, both parties will collaborate on potential project funding and development initiatives. The agreement includes discussions on a life-of-mine offtake arrangement for up to 100% of copper concentrate production. In addition, Kutch Copper may consider investing directly in Caravel Minerals or at the project level, depending on the results of its due diligence process.

The two companies also plan to work together on engineering designs, copper product specifications for Adani’s Kutch Copper smelter in India, and procurement strategies that could accelerate project delivery. This cooperation is expected to enhance project efficiency and align production with downstream requirements.

Caravel stated that the agreement supports its broader financing strategy, which involves collaboration with leading financial institutions and exploring export credit agency (ECA)-supported financing, in addition to traditional debt and equity options. The company emphasized that this approach will strengthen its ability to secure sustainable funding and maintain long-term project stability.

“This collaboration with Adani’s Kutch Copper marks a pivotal step in realising the full potential of the Caravel copper project,” said Caravel Managing Director Don Hyma. “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.”

Adani Natural Resources CEO Vinay Prakash also highlighted the significance of the partnership, noting that it enhances both India’s and Australia’s roles in developing a reliable and sustainable copper supply chain. He said the cooperation reflects both countries’ shared commitment to responsible resource development and global supply chain resilience.

Caravel recently published its first sustainability report, demonstrating its environmental, social, and governance (ESG) credentials. The report also outlined the company’s efforts to strengthen engagement with ECAs as part of its commitment to responsible project development.

In 2023, Denmark’s Export and Investment Fund issued a letter of interest expressing potential ECA financing for the Caravel project, particularly in connection with Danish equipment suppliers. This follows Caravel’s efforts to attract international financial support to advance the large-scale copper development.

The Caravel copper project, once operational, is expected to become one of Australia’s major copper producers, contributing to global supply amid rising demand from electric vehicles and renewable energy industries. Both Caravel and Kutch Copper view the collaboration as an important step toward establishing a stable, responsible, and efficient copper production network linking Australia and India.