Tungsten's New Frontier: A US-Backed Mine Reshapes the Mineral Map

NEW YORK, NY – November 24, 2025 – In the world of critical minerals, where geology and geopolitics are inextricably linked, the appointment of a single executive can signal a tectonic shift. The recent announcement that veteran mining operator Dominic Heaton will take the helm as CEO of Cove Kaz Capital Group is one such moment. Heaton is tasked with a monumental goal: to lead a $1.1 billion joint venture to develop the Severniy Katpar project in Kazakhstan, the largest known undeveloped tungsten resource on the planet. This isn't just about launching a new mine; it's a calculated move to redraw the global supply map for a mineral indispensable to modern technology and national defense.

In partnership with Kazakhstan’s national mining company, JSC Tau-Ken Samruk, the project aims to transform a vast resource into a global production powerhouse. Backed by substantial interest from U.S. government financial institutions, this venture goes far beyond a simple commercial enterprise. It represents a cornerstone of a broader Western strategy to secure resilient supply chains and reduce dependence on a handful of dominant nations for the materials that power the 21st-century economy.

A Strategic Play on the Global Chessboard

Tungsten is the unsung hero of modern industry. Its unparalleled hardness and high melting point make it essential for everything from semiconductor manufacturing and high-speed cutting tools to aerospace components and military armor-piercing projectiles. For decades, the global supply of this critical mineral has been overwhelmingly dominated by China, which the U.S. Geological Survey estimates holds approximately 2.4 million tonnes of reserves. This concentration has created a significant and widely acknowledged supply chain vulnerability for the United States and its allies.

The Severniy Katpar project is an audacious counter-move. Holding JORC-compliant mineral resources of 1.4 million tonnes of tungsten trioxide, the project has the potential to become a new center of gravity in the market. The planned annual production of 1.2 million metric ton units could represent roughly 15% of current global output, a figure substantial enough to meaningfully dilute China's market control and offer a stable, large-scale alternative for Western manufacturers.

The project's strategic importance is underscored by its high-level political backing. The initial agreement was announced during the C5+1 Leaders’ Summit, a platform for cooperation between the U.S. and five Central Asian states. Further cementing its geopolitical significance is the financial support signaled by American institutions. The Export-Import Bank of the United States (EXIM) has issued a Letter of Interest for an astounding $900 million in financing, with the U.S. International Development Finance Corporation (DFC) also signaling its support. This level of government backing is not merely a financial transaction; it is a clear statement of foreign policy, positioning the Kazakhstan project as a key pillar in America’s critical minerals strategy.

The Heaton Factor: Proven Leadership for a Mega-Project

Ambition on this scale requires more than just capital; it demands proven operational expertise. In appointing Dominic Heaton, Cove Kaz has secured a leader whose experience is a direct match for the challenge. Heaton is best known for leading the team that built the Nui Phao integrated tungsten mine in Vietnam from a greenfield asset into the largest tungsten operation currently in production outside of China. Under his leadership, Nui Phao not only achieved significant market share but also became one of the world's lowest-cost producers, a testament to his team's technical and commercial discipline.

“Dominic brings the deep operational experience, commercial discipline, and leadership capability we need as we move forward,” said Pini Althaus, Executive Chairman of Cove Kaz Capital Group. “His appointment reinforces our commitment not only to delivering value for our shareholders and partners, but also to contributing meaningfully to the U.S. Government’s critical minerals strategy.” Althaus emphasized the strategic nature of the venture, stating, “This project is strategically important to both the U.S. and Kazakhstan, and having Dominic at the helm gives us confidence in building a world-class business.”

Heaton’s experience extends beyond just mining ore. At Nui Phao, he was instrumental in developing an integrated value chain, moving into the production of higher-value tungsten chemicals. This expertise will be vital for Cove Kaz as it seeks to establish local processing capacity in Kazakhstan, ensuring more of the mineral's value chain is captured within the partner country and delivered securely to end-users.

For his part, Heaton views the project as a platform for disciplined growth. “More than just a project, Severniy Katpar represents a platform to build a high-performance company and world-class team — one that can responsibly unlock these critical minerals in partnership with Tau-Ken Samruk,” Heaton stated. His immediate priorities include accelerating the Bankable Feasibility Studies and assembling the cross-functional team required for a project of this complexity.

Unlocking Kazakhstan's Mineral Wealth

The project itself comprises two key sites, Northern Katpar and Upper Kairakty, located in the established Karaganda mining district of Central Kazakhstan. Both are near-surface deposits, which typically allows for more cost-effective open-pit mining. The partnership structure, with Cove Kaz holding 70% and the state-owned Tau-Ken Samruk holding 30%, provides a framework that combines international capital and expertise with local knowledge and national strategic alignment.

For Kazakhstan, the $1.1 billion venture represents a significant opportunity for economic development. The project promises job creation, infrastructure investment, and the transfer of advanced mining and processing technologies. By partnering with its national mining company, the government ensures it has a direct stake in the project's success and its alignment with national development goals. Tau-Ken Samruk's role is to help navigate the local regulatory landscape and ensure the project contributes effectively to the country's economic and industrial base, enhancing the competitiveness of its vital mining sector.

The next critical milestone is the completion of the Bankable Feasibility Study. This comprehensive document will provide the detailed technical and financial blueprint necessary to finalize the massive financing package from EXIM and other lenders. It will also lay out the phased development plan, engineering designs, and operational strategies required to bring the world's largest undeveloped tungsten resource from a geological estimate into a productive reality. As the project progresses, all eyes in the global metals market will be watching to see if this ambitious vision can be executed with the same success Heaton demonstrated in Vietnam, thereby establishing a new, reliable axis in the world's tungsten supply.