The US and Kazakhstan will jointly develop the Upper Kairaktinskoye and North Katpar tungsten projects after the Trump Administration outbid a state-backed Chinese firm.

Cove Capital, a US-based mining investment firm, and Tau-Ken Samruk, Kazakhstan’s national mining company, have signed an agreement to form a JV to develop the Upper Kairaktinskoye (Verkhnee Kairakty) and North Katpar (Severny Katpar) tungsten projects in eastern Kazakhstan.

The agreement follows Commerce Secretary Howard Lutnick’s facilitation of negotiations between Cove Kaz Capital Group, a subsidiary of Cove Capital, and Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, to bid for the two tungsten deposits, Bloomberg reported on 21 October.

The US bid reportedly faced strong competition from a state-owned Chinese company that was willing to pay above market value, underscoring China’s strategic interest in the metal.

As per the agreement, Cove Capital will hold a 70% stake in the JV and oversee the development and sales of the metal, whilst the remaining 30% will be held by Tau-Ken Samruk. The total development cost for the two projects is estimated at US$1.1Bn.

The US Export-Import Bank, the government’s export credit agency, has issued a letter of interest to contribute US$900M towards financing.

Together, the deposits are estimated to contain 410kt of tungsten reserves. According to Cove Capital’s CEO, Pini Althaus, mine construction is expected to begin within two years, with production commencing within four with planned output of 12,000tpy concentrate. There are also plans to refine tungsten into APT within Kazakhstan.

Although specific production capacities and grade targets have not yet been disclosed, the additional supply will strengthen the USA’s tungsten availability and reduce reliance on China.

According to Project Blue, China accounted for 81% of global mined tungsten supply in 2024. However, output is expected to decline slightly in 2025 owing to ageing mines, lower ore grades, and a reduced first-batch mining quota.

China has already invested in Kazakhstan’s tungsten sector through the Boguty mine in the Almaty Region, which began operations earlier this year and is expected to produce around 7,500tpy W at full capacity.