Ahmedabad, Nov 6 : Caravel Minerals Ltd on Thursday announced the signing of a landmark non-binding MoU with Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), paving the way for a strategic collaboration on the flagship Caravel Copper Project in Western Australia's Murchison region.

The companies will explore investment and offtake opportunities to accelerate development of the project towards a Final Investment Decision (FID) in 2026, combining Caravel's world-class resource with Adani's proven smelting, processing, and logistics capabilities.

The companies further said that 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 FTA (Free Trade Agreement) to promote cross-border resource development and workforce skilling.

"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.

"Kutch Copper, with its world-class infrastructure and ESG standards, is delighted to align with Caravel to create a model of sustainable value creation across continents," he added.

The partnership also establishes an exclusive framework for negotiating a life-of-mine offtake agreement covering up to 100 per cent 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 KCL's state-of-the-art $1.2 billion (Australian $1.8 billion) Kutch Copper Smelter, the world's largest single-location copper facility, set up in Gujarat.

"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.

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 US $2.07 per pound, positioning it among the lowest-cost producers globally.

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

/IANS