Chile's state-run copper producer Codelco has signed a memorandum of understanding (MoU) with India's Adani Group to develop the Kaburkaala copper exploration project in Chile's northern region of Antofagasta. According to reports from The Hindu BusinessLine, the agreement was signed between Codelco and Kutch Copper Limited, which is part of the Adani Group. The two companies had been evaluating Codelco's copper project portfolio since 2025, in a technical process that included site visits in Chile. Adani chose Kaburkaala and submitted a proposal to move forward with its exploration. The MoU was signed at the end of October during an event of the London Metal Exchange (LME), but has only just been made public.
The project represents a significant step in Adani's overseas sourcing strategy, as the company will provide financing for the exploration project. As reported by The Hindu BusinessLine, the Kaburkaala copper exploration project could offer long-term supply for Adani's smelting complex in Mundra, India. This development aligns with India's broader strategy to strengthen copper supplies through strategic investments abroad. According to Jeet Adani, the alliance has the potential to become a long-term investment for India, as it will make it possible to secure access to copper and build resilience in the supply chain of critical industries including renewable energy, advanced manufacturing, infrastructure, and technology.
India's copper supply strategy is driven by robust demand in the world's fastest-growing major economy. According to The Hindu BusinessLine, India relies on copper imports to address shortfalls and meet this demand. The country has been actively seeking to shore up its supply with investments overseas as part of its strategic approach to secure adequate copper supplies for its growing industrial and economic needs. The announcement comes amid intense political debate in Chile over the crisis facing Codelco, the main state copper producer, following irregularities detected in its 2024 and 2025 production reports.
For Codelco, the MoU is part of its strategy to create value from its exploration portfolio through public-private partnerships, in order to share risks and accelerate the progress of projects with development potential. The state-owned company stated that the memorandum represents an important step in the work carried out with Adani over the past year, and demonstrates Codelco's ability to attract world-class partners. The decision coincides with the development by KCL of a large-scale copper smelting complex in Mundra, Gujarat, which is being designed with cutting-edge technologies, digitalization, and high ESG standards.
