U.S. Miner Closes $1.1 Billion Tungsten Deal With Kazakhstan, Feasibility Work to Start This Summer

Cove Kaz Capital finalized purchase of a majority stake in two Kazakh tungsten deposits on April 29, advancing a project first announced at a White House meeting last year. The company, a unit of U.S.-based Cove Capital, agreed to buy seven-tenths of the venture from state miner Tau-Ken Samruk, leaving the national company with three-tenths ownership and a role in overseeing development.

Company officials said exploration and preparatory work will begin this summer, leading into feasibility studies expected to run roughly one and a half years. Cove Capital’s executive said the close clears regulatory steps agreed with Kazakh authorities and allows the firm to move toward detailed engineering and environmental assessments without major changes to the plan unveiled at last November’s C5+1 summit with President Trump and Central Asian leaders.

The project covers the Northern Katpar and Upper Kairakty deposits, which the company estimates hold about 1.4 million metric tons of tungsten trioxide. Cove Kaz Capital projects output of roughly 5,000 metric tons a year from Northern Katpar and some 7,000 metric tons annually from Upper Kairakty once operations reach full capacity. The firm will lead construction and operations under the partnership arrangement.

On the financing side, Cove Kaz Capital said it has letters of interest from the U.S. International Development Finance Corporation and the Export-Import Bank indicating possible loan guarantees, and that a portion of the metal is expected to be sold to American defense contractors. Tungsten is a key input in certain munitions and armor-penetration systems, and global supplies remain concentrated in a handful of producers, with China the largest supplier.

Kazakh authorities framed the deal as an opportunity to boost local industry and jobs. A Kazakhstan-based mining analyst, speaking on condition of anonymity to discuss market strategy, said the agreement could create several hundred construction jobs and a smaller, stable workforce once mines enter production, while also encouraging investment in processing facilities that have been scarce in the country.

Analysts watching critical-minerals moves see the deal as one of the few significant U.S.-linked mining investments in Central Asia; aside from a longstanding antimony operation in Tajikistan, American capital has been limited in the region. Observers caution that the path from feasibility studies to full production can be long, with community consultations, permitting and infrastructure work all capable of delaying timelines. Still, supporters argue the venture advances efforts to diversify supply chains for minerals tied to national security.