U.S. Secures Strategic Tungsten Supply from Kazakhstan

Cove Capital will collaborate with Kazakhstan's JSC Tau-Ken Samruk to develop a tungsten deposit in Kazakhstan, as part of a new U.S.-Kazakhstan economic partnership. The $1.1 billion project aims to prioritize U.S. mineral needs, with mine construction expected to begin within two years.

Cove Capital, a mining investment firm, is set to develop a substantial tungsten deposit in Kazakhstan, in collaboration with state mining company JSC Tau-Ken Samruk. The agreement, announced by the Trump administration, marks a key step in tightening economic ties between the U.S. and Kazakhstan.

Under the deal, Cove Capital will hold a 70% stake in the joint venture, as well as control of metal sales, while Tau-Ken Samruk will manage the remaining 30%. Development costs for the Northern Katpar and Upper Kairakty projects in eastern Kazakhstan are projected at $1.1 billion, with the U.S. Export-Import Bank expressing interest in funding $900 million.

The project underscores the U.S.’s strategic move to strengthen its critical mineral supplies, as tungsten plays a vital role in hardening steel across various industries. With no U.S. mining of the metal since 2015, Kazakhstan's resources will primarily cater to American needs, thwarting potential Chinese exploitation.