Adani unit signs deal with Australia’s Caravel Minerals copper project

India’s Adani Enterprises said on Thursday its unit Kutch Copper Ltd (KCL) has signed a non-binding deal with Australia’s Caravel Minerals to accelerate development of a copper project in Western Australia.

The initial capital expenditure for the project is estimated at A$1.7 billion ($1.1 billion), with KCL granted first rights to participate in direct equity or project-level investments during the term of the agreement.

The Indian conglomerate’s $1.2 billion Kutch Copper facility in the western state of Gujarat is the world’s biggest single-location plant of its type. The unit has applied to become a listed copper-producing brand on the London Metal Exchange.

Global copper demand is projected to surge by 50% by 2040, the Adani group company said, adding that the Caravel-Kutch Copper collaboration is expected to make a significant contribution to critical minerals supply chains.

The partnership will also leverage the free trade agreement between India and Australia to promote “cross-border resource development and workforce skilling”.

($1 = 1.5389 Australian dollars)

(By Komal Salecha; Editing by Janane Venkatraman)