Cove Capital, a private investment firm based in the US, has signed a memorandum of understanding (MoU) with Saudi Arabia’s Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (AHQ) to advance cooperation on critical minerals projects between the two nations.
The MoU sets forth a framework under which both entities will jointly identify and manage critical minerals projects worldwide.
This partnership seeks to reinforce supply chains that align with the interests of both the US and Saudi Arabia, supporting industrial cooperation.
As part of the agreement, Cove Capital and AHQ will examine upstream and midstream critical mineral assets and potentially form joint ventures or special purpose vehicles for project management.
The development of refining, processing and manufacturing capacities in both countries is also on the agenda.
Additionally, discussions will focus on creating an investment fund dedicated to mining assets and advanced processing technologies.
The collaboration supports Saudi Arabia’s Vision 2030, which aims to expand its mining sector and establish the nation as a global centre for minerals processing.
It also aligns with US initiatives to strengthen critical mineral supply chains crucial for national security and economic stability.
The parties plan to explore varied financing options including Saudi institutional and sovereign funds; engagement with US financial bodies like the Development Finance Corporation and the Export-Import Bank of the United States; possible alignment with the $12bn US critical minerals initiative; and private investments from both Saudi and US sources.
A joint steering committee will be set up to review opportunities, and specific projects will be managed through distinct agreements.
Cove Capital chairman and CEO Pini Althaus said: “This MoU represents a meaningful step in aligning US and Saudi industrial capabilities around critical minerals that underpin modern defence systems, advanced manufacturing and emerging technologies.
“AHQ brings significant industrial strength and regional leadership. Together, we intend to build a disciplined and commercially robust platform that advances world-class assets and anchors long-term supply chains for both nations.”
Last month, Cove Capital, via its subsidiary Cove Kaz Capital Group, signed agreements with Tau-Ken Samruk National Mining Company to progress the development of tungsten deposits in Kazakhstan.
