Cove Kaz Wins Majority Control of Kazakhstan Tungsten Joint Venture, Advancing a $1.1 Billion Critical Minerals Buildout

Cove Kaz Capital Group’s latest move in critical minerals underscores how investors are increasingly underwriting not just resource size, but the ability to deliver secure, value-added supply for strategic industries. By taking majority control of a key tungsten joint venture in Kazakhstan, the company is positioning the project for a faster path from feasibility work and permitting to construction—at a time when tungsten markets are showing heightened price sensitivity to supply concentration.

Majority ownership shifts the project into an execution phase

Under the finalized agreement, Cove Kaz Capital holds a 70% controlling interest in the joint venture, while Kazakhstan’s state-owned mining company Tau-Ken Samruk retains the remaining 30%. The ownership structure gives Cove Kaz operational control over one of the most significant undeveloped tungsten projects globally and establishes governance intended to accelerate development through feasibility studies, permitting, and eventual construction.

The transaction marks a transition from exploration-stage potential to a more structured industrial development framework—an important distinction for investors weighing timelines, financing needs, and delivery risk in capital-intensive mining projects.

Northern Katpar and Upper Kairakty target globally significant resources

The joint venture focuses on the Northern Katpar and Upper Kairakty deposits in Kazakhstan’s Karaganda region. These assets are described as among the largest undeveloped tungsten resources worldwide. JORC-compliant estimates put the project at approximately 1.4 million tonnes of tungsten trioxide (WO₃), placing it at a scale that matters in a market where supply is already highly concentrated.

Total project costs are estimated at around $1.1 billion, covering mining infrastructure, processing facilities, and downstream metallurgical capabilities. The plan is not centered on exporting raw ore; instead, it includes in-country processing designed to produce higher-value tungsten products such as ammonium paratungstate (APT). That emphasis on domestic beneficiation aligns with a broader push across critical minerals toward retaining more value within producing countries.

Kazakhstan links tungsten development to domestic beneficiation goals

The project is closely aligned with Kazakhstan’s national mining strategy, which emphasizes local beneficiation and reducing raw material exports. By building processing capacity inside the country, the venture is expected to increase domestic value creation, strengthen industrial capabilities, attract further foreign direct investment, and support long-term resource monetization strategies.

Kazakhstan already hosts more than 5,000 known mineral deposits and is actively positioning itself within global critical minerals markets—making this tungsten buildout part of a wider effort to convert mineral wealth into industrial output rather than exporting feedstock.

Tungsten’s strategic role meets tighter supply conditions

Tungsten is classified as a critical industrial metal because of its use in aerospace and defense systems, advanced manufacturing, cutting and drilling tools, and energy or high-temperature applications. With global production heavily dependent on a small number of countries, supply concentration has become an increasing concern.

Market conditions have tightened significantly: tungsten prices rose to approximately $1,100 per tonne in early 2026 compared with around $320 per tonne in 2024. The sharp increase highlights how quickly strategic metals can become vulnerable when supply chains are concentrated.

Western financing interest signals geopolitical focus on supply diversification

The project has drawn attention from international development finance institutions, including potential support of up to $700 million from US-linked funding sources. The stated rationale reflects broader geopolitical efforts by Western economies to diversify critical mineral supply chains, reduce dependence on concentrated sources, and secure long-term access to industrial raw materials.

Tungsten is increasingly treated as part of the same strategic policy basket referenced alongside other critical commodities mentioned in global industrial frameworks. Once fully operational, the project is expected to produce about 12,000 tonnes of tungsten per year—around 15% of global supply—with a projected mine life exceeding 50 years. At that scale and duration, the venture could become influential for long-term pricing and supply stability.

Ownership control supports downstream integration and long-term positioning

With majority ownership secured and governance set for accelerated development milestones, Cove Kaz Capital is positioned to lead project development and financing; secure long-term offtake agreements; coordinate industrial partnerships; and drive its downstream integration strategy. In practical terms, that places the venture more firmly within strategic supply chain infrastructure than traditional mining development.

For Kazakhstan, the tungsten project reinforces its ambition to become a major supplier of critical raw materials by integrating foreign capital with domestic resources and industrial policy objectives into one development model. More broadly, it reflects how global mining investment decisions are evolving: projects are no longer evaluated solely on resource size or extraction cost but increasingly on their role in geopolitical supply chains and industrial resilience strategies—where ownership structures, processing integration, and end-market relevance are central considerations.