A major U.S.-linked tungsten mining project in Kazakhstan is moving closer to full development following the finalisation of a key agreement between American mining firm Cove Kaz Capital and Kazakhstan’s state-owned mining company. The deal marks a significant step in expanding U.S. access to critical minerals in Central Asia.
The project, first introduced at a White House–hosted C5+1 summit involving the United States and five Central Asian nations, is valued at approximately $1.1 billion and is designed to strengthen long-term supply chains for strategic industrial metals. Cove Kaz Capital, a subsidiary of Cove Capital, confirmed that exploration activities are set to begin this summer, with feasibility studies expected to follow shortly after regulatory approvals were secured.
Strategic Tungsten Reserves at the Center of the Project
The development focuses on the Northern Katpar and Upper Kairakty tungsten deposits, which are estimated to contain around 1.4 million tons of tungsten trioxide.
Tungsten is widely used in:
- Defense and aerospace systems
- Industrial cutting tools
- High-performance electronics
- Energy and heavy manufacturing applications
Because of its strategic importance, tungsten is considered a critical mineral in global supply chain security planning. The project represents one of the largest American-backed mining ventures in Central Asia, alongside a long-standing antimony operation in Tajikistan.
Ownership Structure and Development Timeline
Under the agreement, Cove Kaz Capital acquired a 70% ownership stake, while Kazakhstan’s national mining company Tau-Ken Samruk retained a 30% share. Cove Kaz Capital is taking the lead role in project development, with full responsibility for exploration, feasibility studies, and eventual production planning.
According to company statements, the feasibility phase is expected to take approximately 18 months, after which a final investment decision could be made depending on geological and economic outcomes. CEO Pini Althaus described the financial closing as a “major milestone,” noting that regulatory cooperation with Kazakh authorities has been instrumental in advancing the project.
Exploration Work Set to Begin This Summer
Following the completion of the share purchase agreement, Cove Kaz Capital confirmed that further exploration drilling and geological assessment will begin during the summer season.
This phase will determine:
- Ore grade consistency
- Deposit scalability
- Extraction feasibility
- Infrastructure requirements
The results will directly influence the project’s long-term commercial viability and production timeline.
Corporate Expansion and Planned Nasdaq Listing
Shortly after the deal closure, Cove Kaz Capital announced plans to merge with Skyline Builders Group Holding Ltd, a move intended to create a larger, publicly traded entity. The combined company is expected to be listed on the Nasdaq stock exchange under the name Kaz Resources Inc., according to a joint corporate statement. The merger is designed to strengthen capital access and support long-term development of the Kazakhstan tungsten assets.
Political and Investment Scrutiny Around the Deal
The Financial Times reported that Donald Trump Jr. and Eric Trump invested in Skyline Builders Group in 2024 and later increased their holdings. Company representatives have stated that project executives have not had direct communication with the investors.
The timing of the investments has drawn political attention due to broader concerns raised by Democratic lawmakers and ethics observers regarding potential overlaps between private investment activity and foreign policy-linked sectors. Kazakhstan’s government had previously indicated support for Cove Kaz’s proposal before the project was formally announced, adding further geopolitical sensitivity to the transaction.
Critical Minerals and U.S. Strategic Supply Chains
The Kazakhstan tungsten project is part of a broader effort by the United States to secure stable access to critical minerals such as nickel, molybdenum, and tungsten, which are essential for industrial production, defense systems, and advanced manufacturing.
As global competition for strategic resources intensifies, Central Asia is becoming an increasingly important region in efforts to diversify supply chains away from concentrated sources. If successful, the project could play a key role in reshaping U.S. access to raw materials critical for high-tech and industrial applications, reinforcing the strategic importance of mining investments abroad.
