Cove Kaz Capital’s Kazakhstan Tungsten Deal Clears a Major Step Toward Development

A U.S.-linked tungsten mining project in Kazakhstan is moving closer to full development after Cove Kaz Capital finalised a key agreement with the country’s state-owned mining company. The progress underscores how Washington’s critical-minerals push is increasingly reaching into Central Asia—while also highlighting the political and financing questions that can follow deals tied to strategic resources.

From White House summit concept to development agreement

The project was first introduced at a White House–hosted C5+1 summit involving the United States and five Central Asian nations. Valued at approximately $1.1 billion, it is intended to strengthen long-term supply chains for strategic industrial metals.

Cove Kaz Capital, a subsidiary of Cove Capital, said exploration activities are set to begin this summer. Feasibility studies are expected to follow shortly after regulatory approvals were secured, placing the project on a path toward potential production planning once technical and economic conditions are confirmed.

Tungsten deposits targeted in Northern Katpar and Upper Kairakty

Development will focus on the Northern Katpar and Upper Kairakty tungsten deposits, which are estimated to contain around 1.4 million tons of tungsten trioxide. Tungsten is used across defense and aerospace systems, industrial cutting tools, high-performance electronics, and energy and heavy manufacturing applications—roles that make it central to global supply chain security planning.

The venture is described as one of the largest American-backed mining projects in Central Asia, alongside a long-standing antimony operation in Tajikistan.

Ownership split and an 18-month feasibility timetable

Under the agreement, Cove Kaz Capital acquired a 70% ownership stake, while Kazakhstan’s national mining company Tau-Ken Samruk retained 30%. Cove Kaz Capital will lead development and take full responsibility for exploration, feasibility studies, and eventual production planning.

Company statements indicate the feasibility phase is expected to last about 18 months. A final investment decision would then depend on geological findings and economic outcomes. Cove Kaz Capital’s CEO Pini Althaus called financial closing a “major milestone,” citing regulatory cooperation with Kazakh authorities as instrumental in moving the project forward.

Exploration drilling begins this summer; results will shape viability

After completion of the share purchase agreement, Cove Kaz Capital confirmed that additional exploration drilling and geological assessment will start during the summer season. The work is intended to determine ore grade consistency, deposit scalability, extraction feasibility, and infrastructure requirements—factors that will directly influence both long-term commercial viability and the project’s production timeline.

Planned merger into a Nasdaq-listed company

Shortly after deal closure, Cove Kaz Capital announced plans to merge with Skyline Builders Group Holding Ltd. The stated goal is to create a larger publicly traded entity expected to list on Nasdaq under the name Kaz Resources Inc., according to a joint corporate statement.

The merger is positioned as a way to strengthen capital access for long-term development of the Kazakhstan tungsten assets.

Political scrutiny follows investor links tied to foreign policy concerns

The Financial Times reported that Donald Trump Jr. and Eric Trump invested in Skyline Builders Group in 2024 before later increasing their holdings. Company representatives have said project executives have not had direct communication with those investors.

The timing of those investments has drawn political attention amid broader concerns raised by Democratic lawmakers and ethics observers about potential overlaps between private activity and foreign policy-linked sectors. Kazakhstan’s government had previously indicated support for Cove Kaz’s proposal before it was formally announced, adding additional geopolitical sensitivity around the transaction.

Why tungsten matters for U.S. critical minerals strategy

The Kazakhstan project forms part of a wider effort by the United States to secure stable access to critical minerals including nickel, molybdenum, and tungsten—materials described as essential for industrial production, defense systems, and advanced manufacturing. As competition for strategic resources intensifies globally, Central Asia has become more prominent in efforts to diversify supply chains away from concentrated sources.

If successful through feasibility and beyond, the project could help reshape U.S. access to raw materials needed for high-tech and industrial applications—reinforcing why investors are watching not only geology but also financing structure and regulatory coordination as development moves from planning toward execution.