Cove Kaz Capital Group has made significant strides in the critical minerals landscape by acquiring a majority stake in a pivotal tungsten joint venture in Kazakhstan. This strategic move highlights the increasing necessity for secure raw material supply chains, particularly for advanced industries and defense sectors.
With the completion of this agreement, Cove Kaz now holds a 70% controlling interest in the joint venture, while Kazakhstan’s state-owned Tau-Ken Samruk maintains a 30% share. This arrangement empowers Cove Kaz with operational control over one of the most promising undeveloped tungsten projects globally, facilitating a governance structure aimed at expediting development through feasibility studies and permitting processes.
The focus of the joint venture is on the Northern Katpar and Upper Kairakty deposits located in Kazakhstan’s Karaganda region, which are recognized as among the largest untapped tungsten resources worldwide. JORC-compliant estimates indicate that this project contains approximately 1.4 million tonnes of tungsten trioxide (WO₃), positioning Kazakhstan as a potential key player in tungsten production outside traditional supply hubs.
Development costs for the project are projected to be around $1.1 billion, encompassing mining infrastructure and processing facilities designed to enhance domestic capabilities. Notably, the initiative aims to establish in-country processing facilities to produce higher-value tungsten products such as ammonium paratungstate (APT), aligning with global trends toward value-added mineral processing.
This project is closely aligned with Kazakhstan’s national mining strategy, which prioritizes local beneficiation and aims to minimize raw material exports. By enhancing local processing capabilities, the venture is expected to generate increased domestic value creation, bolster industrial capabilities, attract foreign direct investment, and support long-term resource monetization strategies.
Tungsten has gained recognition as a critical industrial metal due to its applications across various sectors including aerospace, defense systems, advanced manufacturing, and energy applications. The concentration of tungsten supply has raised concerns about market vulnerabilities, especially as prices have surged from approximately $320 per tonne in 2024 to around $1,100 per tonne by early 2026.
The project has garnered interest from international development finance institutions, potentially securing up to $700 million from US-linked funding sources. This reflects a broader geopolitical strategy among Western economies to diversify critical mineral supply chains and reduce reliance on concentrated sources.
Once fully operational, the project is expected to yield approximately 12,000 tonnes of tungsten annually, which would account for about 15% of global supply. With an anticipated mine life exceeding 50 years, it has the potential to significantly influence global pricing and supply stability.
The transition from project development to structured industrial execution marks a pivotal moment for Cove Kaz Capital. With majority ownership secured, the company is poised to lead project financing, establish long-term offtake agreements, coordinate industrial partnerships, and drive downstream integration strategies.
For Kazakhstan, this tungsten initiative reinforces its ambition to emerge as a major supplier of critical raw materials. The country’s rich mineral resources paired with pro-investment policies are attracting international partnerships aimed at developing large-scale mining projects. The Cove Kaz venture exemplifies how Kazakhstan is effectively merging foreign capital with domestic resources and industrial policy objectives into a cohesive development model.
This transaction signifies a shift in global mining investment perspectives where projects are evaluated not solely on resource size or extraction costs but increasingly on their strategic role within geopolitical supply chains and industrial resilience frameworks.
