Adani Enterprises Arm Signs MoU with Caravel Minerals to Secure Copper Supply for $1.2 Billion Smelter

Adani Enterprises Ltd’s unit, Kutch Copper Ltd (KCL), has entered into a non-binding Memorandum of Understanding (MoU) with Caravel Minerals Ltd to explore investment and supply arrangements for the Caravel Copper Project located in Western Australia’s Murchison region, as per the news reports. 

The understanding is for supporting the project’s development and advancing it towards a Final Investment Decision (FID) expected in 2026.

Supply Framework

The MoU sets out an exclusive framework for negotiating a long-term offtake arrangement, which could cover up to 100% of the copper concentrate output from the Caravel Project. The mine is expected to produce between 62,000 and 71,000 tonnes of payable copper per year in its initial phase. 

The concentrate is intended to be supplied to Kutch Copper’s $1.2 billion smelter in Gujarat, which is among the world’s largest single-site copper refining facilities.

Project Overview

The Caravel Copper Project is situated around 150 kilometres northeast of Perth and is one of Australia’s largest undeveloped copper resources. The deposit holds an estimated 1.3 million tonnes of payable copper and has a projected mine life exceeding 25 years. 

The operation’s all-in sustaining cost is estimated at $2.07 per pound, placing it among relatively low-cost producers.

Investment and Financing Plans

Under the MoU, KCL will have first rights to take part in equity or project-level investments. The project’s initial capital cost is about $1.7 billion Australian dollars. Funding discussions are ongoing with major financial institutions, with options including Export Credit Agency-backed finance for Danish equipment suppliers, in addition to traditional debt and equity financing.

Joint Work Areas

The agreement also outlines technical and commercial collaboration, including joint engineering, procurement coordination, and alignment of product specifications. Both companies will explore opportunities under the India-Australia Free Trade Agreement for skill development and supply chain cooperation.

Read More: Adani Enterprises Plans to Raise ₹25,000 Crore via Rights Issue for Strategic Growth!

Adani Enterprises Share Price Performance 

As of November 7, 2025, 10:06 am, Adani Enterprises share price was trading at ₹2,333.40, a 0.83% increase from the previous closing price.

Conclusion

The MoU provides a framework for long-term supply and investment discussions between Kutch Copper and Caravel Minerals, connecting Australian copper resources with India’s processing capacity.

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