Cove Kaz Capital and Tau-Ken Samruk finalize landmark agreement to advance large-scale tungsten project and strengthen critical minerals supply chain.
Cove Kaz Capital Group, a portfolio company of Cove Capital LLC, has taken a major step forward in one of the world’s most significant critical-minerals developments by signing definitive transaction agreements with Tau-Ken Samruk National Mining Company. The agreements, which include a Share Purchase Agreement and a Shareholders’ Agreement, establish a joint venture to develop the Northern Katpar and Upper Kairakty tungsten deposits in Kazakhstan—two projects that together represent the largest known undeveloped tungsten resource globally.
Under the agreed joint-venture structure, Cove Kaz will hold a 70 percent ownership stake, while Tau-Ken Samruk will retain the remaining 30 percent in Severniy Katpar LLP. The combined development of the two deposits is expected to require an investment of approximately $1.1 billion, reflecting both the scale of the resources and the integrated processing infrastructure planned for the projects.
According to the most recent feasibility studies, the deposits contain JORC-compliant mineral resources totaling approximately 1.4 million tonnes of tungsten trioxide (WO₃). This represents roughly 70 percent of Kazakhstan’s estimated tungsten resources, underscoring the strategic importance of the projects to both the country and the global supply chain.
Once fully operational, Northern Katpar is expected to produce around 5,000 metric tonnes per annum of tungsten, while Upper Kairakty is projected to deliver about 7,000 metric tonnes annually. Combined output of approximately 12,000 tonnes per year would represent close to 15 percent of current global tungsten production, positioning the venture as a major new source of supply. Both deposits are near-surface, bulk-tonnage scheelite systems located in the established Karaganda mining district, an area known for its strong infrastructure and long history of mining activity.
Cove Kaz has already begun preparatory work for a Definitive Feasibility Study, which will include plans for downstream refining capacity within Kazakhstan. The company intends to build facilities capable of producing ammonium paratungstate (APT) and other high-value tungsten compounds, creating an integrated mining-to-processing operation inside the country.
Pini Althaus, Executive Chairman of Cove Kaz Capital Group, described the signing of the definitive agreements as a milestone reflecting the strength of the partnership with Tau-Ken Samruk and Kazakhstan’s leadership. He emphasized that the projects are more than mining developments, calling them a foundation for long-term industrial cooperation between the United States and Kazakhstan. With projected production of 12,000 tonnes annually and access to the largest undeveloped tungsten resource globally, he said the projects are expected to anchor a secure supply chain for allied nations for decades.
Althaus also highlighted the importance of U.S. government support, noting that both the Export-Import Bank of the United States (EXIM) and the U.S. International Development Finance Corporation (DFC) have issued Letters of Interest totaling up to $1.6 billion in potential project financing. He said the alignment between government agencies and private capital demonstrates the effectiveness of coordinated industrial policy in securing critical mineral supply chains.
Dominic Heaton, Chief Executive Officer of Cove Kaz, said the company’s focus now shifts to disciplined execution. He noted that the deposits have already been supported by comprehensive feasibility studies and that the immediate priorities include advancing the Definitive Feasibility Study, completing detailed engineering, securing permits, and planning construction. By developing Northern Katpar and Upper Kairakty together, the company aims to optimize infrastructure, improve sequencing, and capture processing efficiencies.
Heaton added that the company plans to build a fully integrated mining and processing complex capable of producing high-purity ammonium paratungstate in Kazakhstan at globally competitive standards. He described the venture as a technically sophisticated project at significant scale and said the team would draw on its experience from the successful Nui Phao tungsten mine and refinery project in Vietnam.
From a financing perspective, the project has already attracted strong support. The Export-Import Bank of the United States has issued a Letter of Interest for up to $900 million, while the U.S. International Development Finance Corporation has issued a separate Letter of Interest for up to $700 million. In addition, Cove Kaz will be responsible for marketing 100 percent of the project’s output and has signed a Letter of Intent with the International Trade Administration at the U.S. Department of Commerce to prioritize supply for U.S. government and American commercial needs.
The original joint-venture announcement was made during the C5+1 Leaders’ Summit in Washington, D.C., where U.S. and Kazakh leaders emphasized the importance of strengthening allied critical-minerals supply chains. The project has since benefited from coordination across multiple U.S. government agencies focused on securing strategic materials.
Tungsten is widely regarded as a critical mineral due to its exceptional density, hardness, and the highest melting point of any metal. These properties make it essential for advanced industrial applications, aerospace, electronics, and defense systems. With China currently controlling more than 80 percent of global tungsten supply—and imposing export controls on shipments to the United States in early 2025—the Northern Katpar and Upper Kairakty projects are expected to play a transformative role in diversifying supply.
Beyond global supply-chain considerations, the development is also expected to have a significant economic impact within Kazakhstan. By establishing domestic processing capacity for ammonium paratungstate and other tungsten compounds, the project supports the country’s efforts to diversify its industrial base and move further into value-added production. The investment is projected to create around 2,000 jobs during construction and operations, attract substantial foreign direct investment, and contribute to long-term economic growth.
At the same time, the joint venture is positioned to deepen strategic and economic ties between Kazakhstan and the United States. By combining resource development with integrated processing and international financing, the project reflects a broader effort to build resilient, transparent, and mutually beneficial supply chains for critical minerals essential to modern industry and national security.
About Cove Kaz Capital Group
Cove Kaz Capital Group is a portfolio company of Cove Capital LLC, a mining focused investment and development firm founded in 2015 with headquarters in New York. Since 2018, Cove Capital has focused on critical minerals, identifying, investing in, and advancing projects that strengthen United States and allied supply chains. Led by Pini Althaus, the firm brings deep sector expertise and hands-on experience spanning exploration, mine development, processing, and long-term offtake strategy.
Through Cove Kaz, this experience is applied in Kazakhstan, where the company holds a 70% interest in Severniy Katpar LLP, a joint venture with Kazakhstan’s national mining company Tau Ken Samruk, which holds the remaining 30%. The partnership is advancing the Northern Katpar and Upper Kairakty tungsten deposits, among the most significant undeveloped tungsten resources globally, through feasibility, permitting, construction, and planned commercial production. Together, Cove Kaz and its partners are building a long term, reliable supply of tungsten to support strategic industrial and defense needs in the United States.
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.
