Billionaire Gautam Adani’s copper division, Kutch Copper Ltd (KCL), has signed a non-binding agreement with Australia’s Caravel Minerals Ltd to accelerate the development of the Caravel Copper Project in Western Australia with an initial capital expenditure of AUD 1.7 billion (US$1.1 billion).
Under the partnership, KCL, which was established as a unit of Adani Enterprises Ltd in 2021, has acquired the first right to either buy equity or invest directly in the mining project, the company said on Thursday.
The agreement also allows KCL to purchase almost all of the copper produced by the Caravel mine, which is approximately 62,000 to 71,000 tonnes per year to begin with. This copper will be sent directly to Adani’s new $1.2 billion smelter in Gujarat, the world’s largest single-site copper plant, the statement said.
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KCL has a copper smelting and refining complex with a capacity of 0.5 million tonnes per annum.
With global demand for copper expected to grow by 50% by 2040 amid electrification and renewable energy expansion, the Ahmedabad-based conglomerate said it believes the Caravel-Kutch Copper collaboration is positioned to “make a significant contribution to critical mineral supply chains”.
“Copper is the backbone of the global energy transition and our partnership with Caravel Minerals strengthens India and Australia’s role in building a resilient and responsible supply chain for this vital metal,” said Dr. Vinay Prakash, Managing Director, Adani Natural Resources.
The Caravel Copper Project, located about 150 km north-east of Perth, is one of Australia’s largest undeveloped copper resources with a potential mine life in excess of 25 years and an estimated 1.3 million tonnes of copper payable.
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Adani’s latest copper partnership in Australia comes from the company’s Carmichael coal mine, which it paid A$681 million for in 2010, generating more than $1 billion last year.
According to an August report by the Center for Social and Economic Progress, India Copper Report 2026, demand for copper in India is expected to rise sharply. By fiscal year 2030, traditional sectors such as construction, industry and power are expected to consume around 3.24 million tonnes of copper. The currently smaller energy transformation sector is also expected to grow rapidly, with demand likely to reach 274,000 tonnes by the turn of the decade.
The report also said that despite significant reserves, India remains a net importer of copper due to low exploration success, outdated technology, depleted mines, ineffectiveness of auctions in acquiring new mining and exploration blocks, under-investment and limited private sector participation.
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India has a mismatch between copper demand and supply, an analyst said. Indian copper producers rely heavily on imported copper concentrate, making them vulnerable to price swings and supply disruptions, said Sumar Kumar, AVP metals and mining at brokerage Philip Capital. The Caravel deal “seems to be a step in the right direction for Kutch Copper, where copper mine partnerships (in) backward integration can help them better control costs and protect their margins.
