Cove Kaz Capital Group, a subsidiary of Cove Capital, has signed agreements with Tau-Ken Samruk National Mining Company to progress the development of tungsten deposits in Kazakhstan.
These include a share purchase agreement (SPA) and a shareholders’ agreement, marking a significant step forward for the venture.
The development of the Northern Katpar and Upper Kairakty tungsten deposits is being managed through Severniy Katpar.
Cove Kaz Capital Group will hold a 70% ownership interest in Severniy Katpar while Tau-Ken Samruk is set to own the remaining 30%.
Development costs are projected to be around $1.1bn, with production expected to contribute approximately 15% of current global output.
Feasibility studies have reported mineral resources compliant with Joint Ore Reserves Committee (JORC) standards, containing 1.4 million tonnes (mt) of tungsten trioxide, around 70% of Kazakhstan’s estimated tungsten resources.
Planned production output is 5,000 tonnes per annum (tpa) from Northern Katpar and 7,000tpa from Upper Kairakty.
These deposits are situated in the Karaganda mining district, a region known for its robust infrastructure.
Cove Kaz Capital Group executive chairman Pini Althaus said: “This milestone reflects the trust and partnership we have built with Tau-Ken Samruk and the broader leadership of Kazakhstan.
“We are sincerely grateful for the vision and commitment demonstrated by our Kazakh partners in advancing this strategic project, and I would especially like to thank President Kassym-Jomart Tokayev for his leadership and support in strengthening cooperation between our two countries.”
Cove Kaz is advancing toward a definitive feasibility study (DFS) that includes establishing refining capacities within Kazakhstan to produce ammonium paratungstate and other tungsten compounds.
The project is supported by the Export-Import Bank of the US and the US International Development Finance Corporation, offering financing up to $900m and $700m, respectively.
The announcement of this joint venture was made during the C5+1 Leaders’ Summit by President Donald Trump and President Kassym-Jomart Tokayev, reflecting coordinated efforts within the Trump administration to strengthen critical minerals supply chains.
An estimated 2,000 jobs are expected to be created during the construction and operation phases, boosting foreign direct investment and fostering long-term economic growth.
