Primero appointed EPCM contractor as Caravel Copper Project enters critical feasibility phase

Caravel Minerals Limited (ASX: CVV) has taken a major step toward bringing Australia’s largest undeveloped copper deposit into production, appointing Primero Group Limited as the Engineering, Procurement, and Construction Management (EPCM) partner for the Caravel Copper Project. Primero, a subsidiary of NRW Holdings Limited (ASX: NWH), will spearhead the engineering and execution planning phase that feeds into the fully funded Definitive Feasibility Study (DFS), now scheduled for completion in the first quarter of 2026.

Located 150 kilometers northeast of Perth in Western Australia’s Wheatbelt, the Caravel Copper Project sits atop a 30-kilometer mineralised porphyry system and boasts a JORC-compliant resource base of 3.03 million tonnes of contained copper. Ore Reserves total 1.4 million tonnes. The project is expected to produce 65,000 tonnes of copper annually along with recoverable gold, silver, and molybdenum by-products over a 25+ year mine life.

What does Primero’s EPCM appointment mean for the Caravel Copper Project’s construction readiness?

Primero’s selection followed a competitive tender process involving five pre-qualified firms. The bids were rigorously evaluated by Caravel’s newly appointed Study Manager Greg MacDonald, who brings over 30 years of project execution experience, including stints at BHP, Rio Tinto, and Talison Lithium. The EPCM scope includes engineering design, cost estimating, constructability reviews, execution planning, and integration of supporting infrastructure such as tailings, water, and non-process systems.

This appointment marks a pivotal milestone in advancing the Caravel Copper Project from feasibility to potential construction, with Primero expected to leverage its track record in large-scale Western Australian mineral processing infrastructure. The group is currently executing Northern Star Resources Limited’s KCGM Goldfields Growth Project, which will scale the Fimiston Processing Plant from 13Mtpa to 27Mtpa — a comparable benchmark for Caravel’s planned 30Mtpa capacity.

How will the fully funded feasibility study shape the investment decision timeline?

The latest drawdown of AUD 15 million from Caravel’s royalty-based funding agreement with Regal Royalty Fund on July 31, 2025, ensures that the DFS process is fully financed. This critical funding milestone paves the way for Caravel to deliver a high-definition feasibility package, targeting mid-2026 for completion.

Managing Director Don Hyma framed the EPCM appointment as central to de-risking the project’s front-end engineering and enabling a smooth transition to final investment decision (FID) readiness. Institutional observers interpret the structured rollout of engineering, project financing, and infrastructure design as signs that Caravel is methodically aligning with expectations for large-scale, long-life Australian base metal assets.

The DFS will incorporate Primero’s engineering workstreams alongside packages for mine planning, water sourcing, and environmental performance, aiming to deliver a bankable project blueprint amid rising demand for secure copper supply chains.

Why does Caravel Copper Project stand out in the global copper development landscape?

Caravel’s mineral inventory positions it as one of the world’s most significant new copper developments. It ranks as the fourth-largest copper discovery globally in the past decade, making it a key asset in the context of forecast copper shortages tied to energy transition infrastructure, electric vehicles, and grid expansion.

Strategically located near Perth, the project benefits from existing infrastructure including grid power, port access, and telecommunications. These advantages, combined with the project’s low strip ratio (1.3:1) and open-pit configuration, are expected to drive low-cost operations over an extended mine life.

Importantly, Caravel’s processing strategy includes High Pressure Grinding Rolls (HPGR) and a Molybdenum Recovery Circuit — enhancements that both reduce energy intensity and maximise by-product recovery. These technical design choices are gaining traction among institutional ESG-focused investors, who increasingly scrutinise copper project energy profiles and environmental impact.

What’s the current investor sentiment around Caravel Minerals and NRW Holdings?

Caravel Minerals’ share price (ASX: CVV) has remained in a narrow band over the past quarter, with investors awaiting definitive signals on project execution certainty. Institutional sentiment has cautiously improved following the July funding update and Primero’s appointment, viewed as evidence of operational progress and management discipline.

Meanwhile, NRW Holdings (ASX: NWH) has continued to reinforce its role as a diversified contractor of choice across Australia’s infrastructure and resource segments. The integration of Primero into its broader services portfolio has allowed NRW to capture higher-margin EPCM and process plant delivery opportunities.

Market analysts suggest that further upside in Caravel Minerals shares may hinge on successful completion of the DFS, visibility on permitting outcomes, and offtake or strategic partner announcements leading up to the FID.

What are the key watchpoints ahead as Caravel Copper moves toward final investment decision?

With Primero’s scope scheduled to commence on September 1, 2025, the Caravel Copper Project is now entering a critical execution phase where momentum will be closely monitored by investors, industry analysts, and potential offtake partners. Over the next two quarters, Caravel Minerals Limited is expected to release sequential updates tied to engineering package finalization, capital and operating cost validation, and integrated environmental design workstreams. These updates will form the backbone of the fully funded Definitive Feasibility Study (DFS), which aims to deliver a high-confidence, construction-ready project blueprint by mid-2026.

From a regulatory risk perspective, Caravel has already achieved several major milestones that reduce uncertainty heading into the DFS and Financial Investment Decision (FID) window. The Environmental Review Document (ERD), lodged in May 2024, marked a pivotal step in aligning the project with Western Australia’s environmental approvals framework. This was followed by the signing of a critical long-term water access agreement in October 2024—an essential enabler for consistent plant operations and tailings management across the project’s projected 25+ year mine life. These regulatory achievements, when paired with the project’s low strip ratio and favourable logistics, significantly de-risk the path to permitting.

Should the DFS confirm the expected 30 million tonnes per annum (30Mtpa) processing throughput alongside robust project economics—already outlined in earlier pre-feasibility updates—the Caravel Copper Project could position itself among the top tier of global copper development plays. With copper supply deficits looming due to underinvestment in new projects and accelerating demand from electrification, grid upgrades, and EVs, projects like Caravel are becoming increasingly strategic in the eyes of long-term investors and government planners.

For institutional investors evaluating copper exposure in the current macroeconomic environment, Caravel offers a distinctive value proposition. Its location just 150 kilometers from Perth provides superior access to skilled labor, power infrastructure, and port facilities, eliminating many of the execution risks associated with remote copper projects. Additionally, the inclusion of High Pressure Grinding Rolls (HPGR) technology and a Molybdenum Recovery Circuit aligns with global investor priorities around operational efficiency and by-product monetization. These technical design advantages may further boost the project’s internal rate of return (IRR) once the final economic model is released in the DFS.

The runway to mid-2026 is now better defined than at any previous point in Caravel’s development timeline. Primero’s appointment, backed by its proven credentials in delivering large-scale concentrator projects such as Northern Star’s KCGM Growth Project, may ultimately serve as the inflection point that transitions Caravel from a promising exploration story to a bankable copper asset in the heart of Western Australia. As institutional attention continues to gravitate toward copper projects with near-term cash flow potential, Caravel’s execution discipline, funding clarity, and strong stakeholder alignment could make it a core holding in resource-focused portfolios over the next 12–24 months.