New Delhi, Nov. 6 -- Billionaire Gautam Adani's copper business, Kutch Copper Ltd (KCL), has signed a non-binding agreement with Australia's Caravel Minerals Ltd to accelerate development of the Caravel Copper Project in Western Australia with an initial capital expenditure of AUD 1.7 billion ($1.1 billion).

Under the partnership, KCL, set up as a unit of Adani Enterprises Ltd in 2021, has been granted first right to either purchase equity or invest directly in the mining project, the company stated on Thursday.

This deal also allows KCL to purchase almost all the copper produced by Caravel's mine, which is approximately 62,000 to 71,000 tonnes per year at the outset. This copper will be sent directly to Adani's new $1.2 billion smelter...