Strategic Joint Venture Agreement Signed to Advance Major Tungsten Projects
Cove Kaz Capital Group, a portfolio company of Cove Capital LLC, has formally executed definitive transaction agreements with Tau-Ken Samruk National Mining Company to accelerate the development of the Northern Katpar and Upper Kairakty tungsten deposits in Kazakhstan. The agreements include a Share Purchase Agreement (SPA) and a Shareholders’ Agreement (SHA), laying the legal and operational foundation for a long-term strategic partnership. Under the structure of the joint venture, Cove Kaz will hold a 70 percent controlling interest, while Tau-Ken Samruk will retain a 30 percent ownership stake in Severniy Katpar LLP, the operating entity responsible for advancing the projects. Total estimated development costs for the combined projects are approximately $1.1 billion, reflecting the scale and ambition of what is poised to become one of the most significant tungsten developments in the world.
Largest Known Undeveloped Tungsten Resource Globally
The Northern Katpar and Upper Kairakty deposits collectively represent the largest known undeveloped tungsten resource globally. According to the most recent feasibility studies, the projects host JORC-compliant mineral resources totaling approximately 1.4 million tonnes of tungsten trioxide (WO₃). This volume equates to nearly 70 percent of Kazakhstan’s estimated tungsten resources, underscoring the strategic national importance of the development. The scale of these resources positions the projects not only as a domestic industrial milestone for Kazakhstan but also as a globally significant asset within the broader critical minerals landscape. The deposits are characterized as near-surface, bulk-tonnage scheelite systems, enabling favorable mining economics and operational efficiencies. Their location within the well-established Karaganda mining district ensures access to robust infrastructure, including transport networks, power supply, and skilled labor, which will support timely and cost-effective project execution.
Planned Production and Global Market Impact
Once operational, Northern Katpar is expected to produce approximately 5,000 metric tonnes per annum (mtpa) of tungsten concentrate, while Upper Kairakty is projected to deliver 7,000 mtpa, resulting in a combined annual output of approximately 12,000 mtpa. This level of production would represent roughly 15 percent of current global tungsten output, significantly reshaping the supply landscape. At a time when supply chain diversification has become a priority for many industrialized nations, the scale of this production has substantial geopolitical and economic implications. By bringing these volumes to market, Cove Kaz and its partners aim to provide a stable and secure supply source outside of dominant producing regions, contributing to greater global balance and supply resilience.
Advancement Toward Definitive Feasibility and Downstream Processing
Cove Kaz has initiated preparatory work for a comprehensive Definitive Feasibility Study (DFS), which will refine technical, economic, environmental, and operational parameters prior to full-scale construction. In addition to upstream mining development, the Company plans to establish downstream refining capacity within Kazakhstan to produce ammonium paratungstate (APT) and other value-added tungsten compounds. This integrated approach reflects a strategic commitment not only to extract raw materials but also to create higher-value processing capabilities domestically. By producing high-purity APT within Kazakhstan, the project will enhance the country’s industrial base, create skilled employment opportunities, and capture greater economic value within the national economy.
Leadership Perspectives on Strategic Partnership
Pini Althaus, Executive Chairman of Cove Kaz Capital Group, described the execution of definitive agreements as a milestone reflecting the strong trust and cooperation established between Cove Kaz and Tau-Ken Samruk, as well as the broader leadership of Kazakhstan. He expressed gratitude for the support and vision demonstrated by Kazakh partners and acknowledged the leadership of President Kassym-Jomart Tokayev in strengthening bilateral cooperation. Althaus emphasized that Northern Katpar and Upper Kairakty are more than mining ventures; they represent a foundation for long-term industrial collaboration between the United States and Kazakhstan. With planned production reaching 12,000 tonnes per annum and access to the largest undeveloped tungsten resource base globally, the projects are positioned to anchor a secure allied supply chain for decades to come.
Execution Strategy and Technical Expertise
Dominic Heaton, Chief Executive Officer of Cove Kaz Capital Group, highlighted that with definitive agreements now in place, the Company’s focus will shift toward disciplined execution. Immediate priorities include completion of the Definitive Feasibility Study, detailed engineering design, permitting processes, and comprehensive construction planning. Heaton noted that developing Northern Katpar and Upper Kairakty in tandem allows for optimized infrastructure utilization, coordinated sequencing, and processing efficiencies that enhance overall project economics. The Company intends to construct a fully integrated mining and processing complex capable of producing high-purity ammonium paratungstate in Kazakhstan to globally competitive standards. The management team brings extensive experience from previous large-scale tungsten developments, including the successful Nui Phao tungsten mine and refinery project in Vietnam, and plans to apply similar technical rigor and operational excellence to deliver a safe, efficient, and world-class operation in Kazakhstan.
Financing Support from U.S. Government Institutions
The project has attracted substantial interest and preliminary financial backing from U.S. government institutions. The Export-Import Bank of the United States has issued a Letter of Interest for up to $900 million in potential project financing, while the U.S. International Development Finance Corporation has issued a Letter of Interest for up to $700 million. Together, these commitments total up to $1.6 billion in potential support, signaling strong alignment between U.S. strategic priorities and private-sector investment. Cove Kaz will be responsible for marketing 100 percent of project output and has entered into a Letter of Intent with the International Trade Administration at the U.S. Department of Commerce to prioritize supply for U.S. government and American commercial requirements. This coordinated approach demonstrates how public and private capital can align to advance strategic industrial objectives.
Strategic Announcement at the C5+1 Leaders’ Summit
The original joint venture announcement was made during the C5+1 Leaders’ Summit in Washington, D.C., where President Donald J. Trump and President Kassym-Jomart Tokayev underscored the importance of enhanced cooperation in critical minerals development. The initiative has benefited from advocacy and coordination across the U.S. administration, including the U.S. Trade Advocacy Center and senior officials focused on strengthening allied critical mineral supply chains. The high-level diplomatic support reflects the broader strategic context in which tungsten has become a focal point of economic security policy.
Tungsten as a Critical Mineral and Supply Chain Imperative
Tungsten is widely recognized as a critical mineral due to its exceptional physical properties, including extraordinary density, remarkable hardness, and the highest melting point of any metal. These characteristics make it indispensable in advanced industrial applications, aerospace engineering, defense systems, electronics, and high-performance manufacturing. Currently, China controls more than 80 percent of global tungsten supply and has implemented export controls affecting shipments to the United States as of February 2025. Against this backdrop, the Northern Katpar and Upper Kairakty projects represent a transformative opportunity to diversify supply sources and reinforce long-term supply chain resilience. By establishing a major alternative production hub in Kazakhstan, the joint venture aims to mitigate concentration risk and strengthen allied access to this strategically vital mineral.
Economic and Industrial Impact for Kazakhstan
The development of Northern Katpar and Upper Kairakty is expected to generate substantial economic benefits for Kazakhstan. The project is projected to create approximately 2,000 jobs across construction and operational phases, stimulate local supply chains, and attract significant foreign direct investment. Beyond employment, the establishment of domestic deep-processing facilities for ammonium paratungstate and related tungsten compounds supports industrial diversification and technological advancement within the country. By moving beyond raw material exports toward higher-value manufacturing, Kazakhstan can enhance its competitiveness in the global critical minerals market. The partnership also deepens economic and strategic ties between Kazakhstan and the United States, reinforcing a shared commitment to transparent, resilient, and mutually beneficial supply chains. Through disciplined project execution, robust financing support, and high-level governmental alignment, Cove Kaz and its partners are positioning Northern Katpar and Upper Kairakty as cornerstone assets in the future of global tungsten production and critical mineral security.
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