NEW YORK–(BUSINESS WIRE)–Cove Capital LLC (“Cove” or the “Company”) and the National Mining Company of Kazakhstan, JSC Tau-Ken Samruk, are pleased to announce an agreement to develop the largest known undeveloped tungsten resource in the world.
Cove Kaz Capital Group LLC (“Cove Kaz”), a portfolio company of U.S.-based Cove Capital LLC, will own 70 percent and Tau-Ken Samruk will retain 30 percent ownership of Severniy Katpar LLP, the Northern Katpar and Upper Kairakty projects.
Cove Kaz will be responsible for marketing 100% of the output and has entered into a Letter of Intent with the International Trade Association at the U.S. Department of Commerce to prioritize U.S. Government and American commercial needs.
The announcement was made during the C5+1 Leaders’ Summit in Washington, D.C. by U.S. President Donald J. Trump and Kazakhstan President Kassym-Jomart Tokayev.
Total project development costs at Northern Katpar and Upper Kairakty are estimated at USD $1.1 billion. The Export-Import Bank of the United States has issued a Letter of Interest for USD $900 million in financing, and the U.S. International Development Finance Corporation has also issued a Letter of Interest.
Cove Kaz has assembled a world-class project team led by Dominic Heaton. Mr. Heaton led the team that built the Nui Phao integrated tungsten mine and refinery in Vietnam – the largest tungsten operation currently in production outside China.
Cove Kaz has already commenced preparatory work to support a Definitive Feasibility Study on Northern Katpar, including downstream refining capacity in Kazakhstan to produce ammonium paratungstate (APT) and other tungsten compounds.
“On behalf of Cove Capital and Cove Kaz, I want to thank President Donald J. Trump and his administration, including Secretary of Commerce Mr. Howard Lutnick, for their unwavering support in bringing this acquisition to the finish line. The U.S. Trade Advocacy Center’s engagement has been exceptional, helping align financing, offtake pathways, and policy support so we can deliver a secure, allied supply of tungsten for America’s industrial and defense needs,” said Pini Althaus, Chief Executive Officer of Cove Capital and Cove Kaz Capital.
“I also wish to thank President Kassym-Jomart Tokayev for his leadership and partnership. This is a win for both nations: it strengthens U.S. supply-chain resilience while creating high-quality jobs, investment, and long-term prosperity in Kazakhstan. We are proud to advance a project that deepens the U.S.–Kazakhstan economic relationship and delivers durable value for both countries,” Mr. Althaus added.
Tungsten – An Essential Critical Mineral
The U.S. Defense Logistics Agency (DLA) ranks tungsten as a “material of interest” and the European Union ranks tungsten as the raw material with the greatest economic importance because, of all metals, it has the highest tensile strength at high temperatures, the highest melting point, and is corrosion-resistant. Generally, tungsten is not substitutable.
Tungsten’s extreme density, hardness (as carbides), and highest-in-metal melting point make it indispensable for cutting and drilling tools, high-temperature alloys, counterweights, semiconductor contacts, and radiation shielding. Critically for defense, it’s used in armor-piercing and kinetic-energy munitions (APFSDS, EFP liners), missile and aircraft ballast/trim weights, high-temp rocket and nozzle inserts, fragmentation bodies, hard-wear parts for weapons manufacturing, and portable radiation shielding.
As with many critical minerals, China controls both primary production and processing of tungsten. With control of more than 80% of the global market, China introduced controls on exports to the U.S. of tungsten and products containing tungsten effective February 4, 2025.
Severniy Katpar, LLP
Severniy Katpar LLP holds licenses to two key projects – Northern Katpar and Upper Kairakty (the “Projects”) – located less than 20 miles apart by road in the established Karaganda mining district in Central Kazakhstan, less than 100 miles south of the City of Karaganda.
The most recent feasibility studies completed in April 2023 reported total JORC-compliant mineral resources containing 1.4 million tonnes of tungsten trioxide (WO3), representing approximately 70% of Kazakhstan’s estimated 2 million tonnes of tungsten resources. For perspective, the U.S. Geological Survey estimates China’s reserves at 2.4 million tonnes.
The current feasibility studies support production of approximately 5,000 metric tonnes per annum (mtpa) at Northern Katpar, and 7,000 mtpa from Upper Kairakty, for a total of 12,000 mtpa, representing approximately 15% of current global production.
The Projects are supported by strong infrastructure, both are near-surface, bulk tonnage, primarily scheelite mineralization. Both have extensive feasibility studies on a standalone basis that do not incorporate synergies of staged co-development.
Cove Capital LLC in Kazakhstan
In 2023, Cove Capital’s Portfolio Company, Kaz Resources LLC (through its wholly owned subsidiary Kaz Critical Minerals LLP), became the first U.S. company to receive critical minerals and rare earths land concessions in Kazakhstan. These concessions include thirteen (13) minerals such as rare earth elements, lithium, tantalum, beryllium, niobium, cesium and tin.
In September 2023, Cove Capital LLC signed an MoU with Kazakhstan’s Sovereign Wealth Fund, Samruk Kazyna, as part of the cooperation on critical raw materials, specifically rare earth metals.
On April 8, 2024, Cove Capital LLC, announced a landmark collaboration with Tau-Ken Samruk, Kazakhstan’s national mining company, aimed at advancing the exploration and development of rare earth and critical metals within the Republic of Kazakhstan.
Tau-Ken Samruk (via “Qazgeology” JSC), entered into a binding joint venture agreement with Cove Capital for geological exploration on the Akbulak rare earth project in the Kostanay region of Kazakhstan. Historical reserves at the site include reserves of rare earth elements, including those used for permanent magnets.
To carry out geological exploration work, a joint venture was be created between “Qazgeology” JSC and Cove Capital with the parties’ participation shares: Cove Capital – 75% and “Kazgeology” JSC – 25%. Cove Capital is fully financing exploration work until reserves are listed on the balance sheet.
About Cove Capital LLC
Cove Capital, founded in 2015, is a mining-focused firm with its head offices in New York and Melbourne, Australia. Since 2018, the company has concentrated on critical minerals—identifying, investing in, and developing projects that support U.S. and allied supply chains. Under the leadership of Pini Althaus, Cove Capital brings deep sector knowledge and hands-on development experience across exploration, mining, processing, and offtakes.
About Tau-Ken Samruk
Tau-Ken Samruk is the national mining company of Kazakhstan, overseeing the efficient development of the country’s mineral resources. Committed to innovation and sustainability, Tau-Ken Samruk collaborates with domestic and international partners to enhance the competitiveness of Kazakhstan’s mining sector and support economic growth.
Contacts
Brandon McGrath
Samantha O’Neil
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