Cove Kaz Capital Group has strengthened its position in the global critical minerals sector after securing majority ownership of a major tungsten joint venture in Kazakhstan, a move that underscores the growing strategic importance of secure raw material supply chains for advanced industries and defense applications.
Under the finalized agreement, Cove Kaz Capital now holds a 70% controlling interest in the joint venture, while Kazakhstan’s state-owned mining company Tau-Ken Samruk retains the remaining 30%.
This structure gives Cove Kaz operational control over one of the most significant undeveloped tungsten projects globally, while also establishing a governance framework designed to accelerate development through feasibility studies, permitting, and eventual construction. The deal represents a shift from exploration-stage potential to structured industrial development.
One of the World’s Largest Untapped Tungsten Resources
The joint venture is focused on the Northern Katpar and Upper Kairakty deposits in Kazakhstan’s Karaganda region. These assets are widely regarded as among the largest undeveloped tungsten resources in the world. According to JORC-compliant estimates, the project hosts approximately 1.4 million tonnes of tungsten trioxide (WO₃), placing it at a globally significant scale in a market where supply is already highly concentrated. This positions Kazakhstan as a potential future hub for tungsten production and processing outside traditional supply centers.
Total project development costs are estimated at around $1.1 billion, covering mining infrastructure, processing facilities, and downstream metallurgical capabilities.
Importantly, the project is not designed as a raw ore exporter. Instead, it includes plans for in-country processing facilities that will produce higher-value tungsten products such as ammonium paratungstate (APT). This approach reflects a broader global trend toward value-added mineral processing, where countries aim to retain more economic benefit domestically rather than exporting raw materials.
Kazakhstan Pushes for Domestic Beneficiation and Industrial Growth
The project aligns closely with Kazakhstan’s national mining strategy, which emphasizes local beneficiation and reduced raw material exports.
By developing processing capacity within the country, the venture is expected to:
- Increase domestic value creation
- Strengthen industrial capabilities
- Attract further foreign direct investment
- Support long-term resource monetization strategies
Kazakhstan already hosts more than 5,000 known mineral deposits, and is actively positioning itself as a key player in global critical minerals markets.
Tungsten Becomes a Strategic Global Commodity
Tungsten is classified as a critical industrial metal due to its use in:
- Aerospace and defense systems
- Advanced manufacturing
- Cutting and drilling tools
- Energy and high-temperature applications
Supply concentration has become a growing concern, with global production heavily dependent on a small number of countries. Market conditions have tightened significantly, with tungsten prices rising to approximately $1,100 per tonne in early 2026, compared with around $320 per tonne in 2024. This sharp increase highlights increasing supply-chain vulnerability in strategic metals markets.
Western Strategic Financing Interest Strengthens
The project has attracted attention from international development finance institutions, including potential support of up to $700 million from US-linked funding sources.
This reflects a broader geopolitical effort by Western economies to:
- Diversify critical mineral supply chains
- Reduce dependence on concentrated sources
- Secure long-term access to industrial raw materials
Tungsten is increasingly viewed as part of the same strategic basket as lithium, nickel, and copper in global industrial policy frameworks.
Once fully operational, the project is expected to produce approximately 12,000 tonnes of tungsten per year, representing around 15% of global supply. With a projected mine life exceeding 50 years, the venture could become one of the most influential long-term tungsten producers worldwide. Such scale would give the project the potential to influence global pricing and supply stability.
From Asset Development to Strategic Supply Chain Positioning
The completion of the transaction marks a transition from project development to fully structured industrial execution.
With majority ownership secured, Cove Kaz Capital is now positioned to:
- Lead project development and financing
- Secure long-term offtake agreements
- Coordinate industrial partnerships
- Drive downstream integration strategy
This moves the venture firmly into the category of strategic supply chain infrastructure rather than traditional mining development.
Kazakhstan’s Growing Role in Critical Minerals Supply Chains
For Kazakhstan, the tungsten project reinforces its ambition to become a major global supplier of critical raw materials.
The country’s mineral wealth, combined with pro-investment policies, is increasingly attracting international partnerships aimed at developing large-scale industrial mining assets.
The Cove Kaz venture is a clear example of how Kazakhstan is integrating:
- Foreign capital
- Domestic resource bases
- Industrial policy objectives
into a unified development model.
The transaction reflects a broader transformation in global mining investment. Projects are no longer assessed purely on resource size or extraction cost, but increasingly on their role in geopolitical supply chains and industrial resilience strategies. Ownership structures, processing integration, and end-market relevance are now central to investment decisions.
