Cove Kaz and Tau-Ken Samruk Finalize $1.1B Deal for World’s Largest Undeveloped Tungsten Resource
Event summary
- Cove Kaz Capital Group and Tau-Ken Samruk signed definitive agreements to develop Northern Katpar and Upper Kairakty tungsten deposits in Kazakhstan, with Cove Kaz holding a 70% stake.
- Total development costs estimated at $1.1 billion, with planned annual production of 12,000 metric tonnes per annum (mtpa) of tungsten trioxide (WO₃).
- The projects contain 1.4 million tonnes of WO₃, representing roughly 70% of Kazakhstan’s estimated tungsten resources.
- EXIM and DFC issued Letters of Interest totaling up to $1.6 billion in project financing.
The big picture
This deal marks a significant step toward diversifying the global tungsten supply chain, reducing reliance on China, which controls over 80% of current production. The partnership between Cove Kaz and Tau-Ken Samruk underscores growing U.S.-Kazakhstan collaboration in critical minerals, with strategic implications for defense and industrial applications.
What we're watching
- Execution Risk
- Whether Cove Kaz can deliver on the Definitive Feasibility Study and construction planning within the projected timeline.
- Geopolitical Alignment
- How the U.S.-Kazakhstan partnership will evolve under shifting global trade dynamics, particularly in critical minerals.
- Market Impact
- The pace at which this project could disrupt China’s dominance in the tungsten supply chain and influence global pricing.
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