Adani to fund Codelco copper project in Chile to supply Mundra smelter

what happened

Chile's state copper miner Codelco said on Wednesday that it has entered an agreement with India's Adani Group to develop the Kaburkaala exploration project in the northern Antofagasta region, according to Moody's. Under the deal, Adani will fund the project, which could secure long-term copper supply for its smelting complex in Mundra, India, Codelco said.

The two firms agreed to a partnership last year and reviewed several Codelco copper projects before Adani chose Kaburkaala for exploration. The contract was signed by Codelco and Kutch Copper Limited, a unit of Adani Group.

India relies on imported copper to cover shortfalls as demand grows in the world's fastest-growing major economy, and it has been pushing to strengthen supply through overseas investment.

why it matters

For the copper market, the deal shows how large consumers are directly financing mining abroad. Steady Indian demand and long-term contracts could keep investor interest in Chilean copper assets firm. The project is still at the exploration stage, so its effect on copper supply in the coming years will be limited.

market impact

Copper: Indian long-term demand and exploration funding support interest in Chilean projects

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