Photo from akorda.kz
U.S. mining investment firm Cove Capital, together with Kazakhstan’s Tau-Ken Samruk, will develop the Severny Katpar and Verkhnee Kairakty tungsten deposits in the Karaganda region — two of the largest untapped tungsten reserves in the world, according to the Samruk-Kazyna sovereign fund.
The agreement was signed in Washington ahead of the Central Asia–U.S. Summit. As stated in the document reviewed by Reuters, Cove Capital will hold a 70% stake in the joint venture and control metal sales, while Tau-Ken Samruk will retain 30%.
The total cost of developing both deposits in eastern Kazakhstan is estimated at $1.1 billion. The U.S. Export–Import Bank has issued a letter of interest signaling readiness to finance up to $900 million.
Tungsten — used to harden steel in numerous industrial sectors — is considered a critical mineral by the U.S. government. The United States has not produced tungsten domestically since 2015, while China remains the world’s largest supplier.
According to the agreement, tungsten from the Kazakh projects will be used to meet priority needs of the U.S. government and industry.
Cove CEO Pini Althaus told Reuters that mine construction is expected to begin within two years, with production starting in about three and a half years. Processing of the metal will also take place in Kazakhstan.
Althaus added that U.S. President Donald Trump and Commerce Secretary Howard Lutnick personally participated in negotiations to prevent Chinese firms from acquiring the deposits.
The partnership is part of broader measures announced by Washington and Astana to strengthen economic cooperation. Kazakhstan’s President Kassym-Jomart Tokayev is currently in Washington for talks with Trump and participation in the Central Asia–U.S. Summit.
