Caravel Minerals confirms its Definitive Feasibility Study for the Caravel Copper Project remains on track for mid-2026, while regulatory water investigations push the Final Investment Decision to late 2027. Meanwhile, strategic talks with Adani advance steadily.
- Definitive Feasibility Study (DFS) on schedule for H1 2026 release
- Strategic partnership with Adani progressing with draft offtake term sheet
- Additional water investigations extend regulatory approval timeline
- Final Investment Decision (FID) deferred to end of 2027
- Company advancing engineering, financing, and stakeholder engagement in parallel
Definitive Feasibility Study on Track
Caravel Minerals has provided a reassuring update on the progress of its Caravel Copper Project, confirming that the Definitive Feasibility Study (DFS) remains on schedule for release in the first half of 2026. This comprehensive study encompasses metallurgical optimisation, mine planning, infrastructure design, and detailed capital and operating cost estimates, all critical to advancing the project towards development.
Site activities continue actively, with two drill rigs conducting geotechnical and water investigations, underscoring the company’s commitment to thorough groundwork. Following the DFS, Caravel plans to initiate Front-End Engineering Design (FEED) and detailed mining studies, aiming to further de-risk the project and prepare for operational readiness.
Strategic Partnership with Adani Gains Momentum
On the commercial front, Caravel’s engagement with Adani remains positive under a non-binding memorandum of understanding. The recent delivery of a first draft offtake concentrate agreement term sheet marks a significant milestone, complemented by a successful site visit from Adani’s representatives and technical consultants, who reported no issues.
While the partnership discussions are extending beyond initial timelines, both parties appear committed to progressing towards a mutually beneficial agreement. This collaboration could be pivotal in securing market access and financing for the Caravel Copper Project.
Regulatory Approvals and Environmental Commitments
Regulatory processes are shaping the project’s timeline, with additional water investigations required by the Department of Water and Environmental Regulation. These extended studies are expected to delay the Final Investment Decision (FID) to the end of 2027, aligning with the anticipated Ministerial approval.
Caravel is actively managing this delay by advancing engineering, financing, and stakeholder engagement workstreams concurrently. The company is also working closely with the Western Australian Government to secure lead agency coordination, aiming to streamline the approvals pathway.
Importantly, Caravel emphasises its commitment to high Environmental, Social, and Governance (ESG) standards, which are critical for securing Export Credit Agency-backed financing. This focus on sustainability and regulatory compliance may enhance the project’s long-term viability and investor confidence.
Looking Ahead
While the delay in the FID introduces some uncertainty, the steady progress on technical studies and strategic partnerships provides a solid foundation for Caravel Minerals. Investors will be watching closely for the DFS release and further developments in regulatory approvals and commercial agreements.
Bottom Line?
Caravel’s steady technical progress and advancing partnerships contrast with regulatory delays, setting the stage for a critical 2027 milestone.
Questions in the middle?
- How will the extended water investigations impact overall project costs and timelines?
- What are the key terms and conditions expected in the final offtake agreement with Adani?
- Can Caravel secure streamlined regulatory approvals through government coordination to avoid further delays?