Kazakhstan and U.S. Forge $1.1B Tungsten Mining Partnership

Post by : Bianca Suleiman

In a pivotal effort to fortify America's foothold on essential minerals, Cove Capital, a U.S.-based mining investment firm, has entered into a partnership with Kazakhstan’s state-owned miner JSC Tau-Ken Samruk to extract one of the globe's largest tungsten reserves. This announcement is anticipated to be officially released by the Trump administration on Thursday, signifying a robust economic alliance between Washington and Astana.

As outlined in the agreement, Cove Capital will take a 70% stake in the joint venture and oversee global sales, while Tau-Ken Samruk will maintain a 30% interest. The collaboration targets the Northern Katpar and Upper Kairakty projects located in eastern Kazakhstan, with projected development expenses reaching $1.1 billion.

Supporting this venture, the U.S. Export-Import Bank has issued a $900 million letter of interest to facilitate project financing—an unmistakable indication of Washington's determination to establish a reliable, non-Chinese supply of tungsten.

Tungsten, essential for reinforcing steel across various sectors, including defense and technology, has been designated a critical mineral by the U.S. government. Domestic tungsten mining in the U.S. has not occurred since 2015, with China dominating global production. This partnership will ensure that tungsten harvested in Kazakhstan is directed toward U.S. government and commercial requirements, thus helping diminish dependence on Chinese sources.

Mine construction is projected to commence within two years, with production and refining operations slated to begin approximately three and a half years thereafter. This collaboration also highlights Washington's expanding interest in the unexploited resource potential of Central Asia, part of a comprehensive strategy to bolster regional relations through commerce and investment.

During the recent C5+1 Business Conference in Washington, featuring senior officials from both nations, the initiative was labeled a "generational step" towards achieving mineral autonomy and industrial strength. This tungsten alliance now serves as a fundamental element of revitalized cooperation between the two countries, merging resource security with diplomatic engagement.