Cove Kaz Capital Group and Tau-Ken Samruk Execute Definitive Agreements to Develop the World’s Largest Known Undeveloped Tungsten Resource

ASTANA, Kazakhstan & NEW YORK–(BUSINESS WIRE)–Cove Kaz Capital Group (“Cove Kaz” or “the Company”), a portfolio company of Cove Capital LLC, is pleased to announce that it has executed definitive transaction documents with Tau-Ken Samruk National Mining Company, including a Share Purchase Agreement (SPA) and Shareholders’ Agreement (SHA), to advance the development of the Northern Katpar and Upper Kairakty tungsten deposits in Kazakhstan.

Under the joint venture structure, Cove Kaz will hold a 70% ownership interest and Tau-Ken Samruk will retain 30% ownership in Severniy Katpar LLP. Total development costs are estimated at approximately $1.1 billion.

The projects collectively represent the largest known undeveloped tungsten resource globally. The most recent feasibility studies report JORC-compliant mineral resources containing 1.4 million tonnes of tungsten trioxide (WO₃), equating to roughly 70% of Kazakhstan’s estimated tungsten resources.

Planned annual production is approximately 5,000 metric tonnes per annum (mtpa) from Northern Katpar and 7,000 mtpa from Upper Kairakty, for a combined 12,000 mtpa—representing approximately 15% of current global production. Both deposits are near-surface, bulk-tonnage scheelite systems located in the established Karaganda mining district with strong infrastructure.

Cove Kaz has commenced preparatory work toward a Definitive Feasibility Study, including downstream refining capacity in Kazakhstan to produce ammonium paratungstate (APT) and other tungsten compounds.

Pini Althaus, Executive Chairman of Cove Kaz Capital Group, commented, “This milestone reflects the trust and partnership we have built with Tau-Ken Samruk and the broader leadership of Kazakhstan. We are sincerely grateful for the vision and commitment demonstrated by our Kazakh partners in advancing this strategic project, and I would especially like to thank President Kassym-Jomart Tokayev for his leadership and support in strengthening cooperation between our two countries.”

“Northern Katpar and Upper Kairakty are not simply mining assets. They are a cornerstone for long-term industrial cooperation between the United States and Kazakhstan. With planned production of 12,000 tonnes per annum and the largest undeveloped tungsten resources globally, this project will anchor a secure, allied supply chain for decades.”

“We are also appreciative of the support and advocacy from the Trump Administration, including the roles played by EXIM and DFC in issuing Letters of Interest totaling up to USD 1.6 billion. This alignment between governments and private capital demonstrates what can be achieved when strategic interests and industrial policy are working together,” Mr. Althaus added.

Dominic Heaton, Chief Executive Officer of Cove Kaz Capital Group, added: “With definitive agreements in place, our focus turns to disciplined execution. These deposits contain 1.4 million tonnes of WO₃ and have been supported by comprehensive feasibility studies. Our immediate priorities include advancing the Definitive Feasibility Study, detailed engineering, permitting, and construction planning. The combined development of Northern Katpar and Upper Kairakty allows us to optimize infrastructure, sequencing, and processing efficiencies. We intend to build a fully integrated mining and processing complex capable of producing high-purity ammonium paratungstate in Kazakhstan at globally competitive standards.”

“This is a technically sophisticated project at significant scale. Our team will build on its shared experiences in permitting, constructing, optimizing and operating the highly-successful Nui Phao tungsten mine and refinery project in Vietnam, to deliver a unique Kazakh business. We are committed to delivering a safe, efficient, and world-class operation,” Mr. Heaton said.

Financing, Government Support, and Strategic Alignment

The Export-Import Bank of the United States (EXIM) has issued a Letter of Interest for up to $900 million in project financing, and the U.S. International Development Finance Corporation (DFC) has issued a Letter of Interest for up to $700 million to support the development. Cove Kaz will be responsible for marketing 100% of project output and has entered into a Letter of Intent with the International Trade Administration at the U.S. Department of Commerce to prioritize U.S. Government and American commercial needs.

The original joint venture announcement was made during the C5+1 Leaders’ Summit in Washington, D.C. by President Donald J. Trump and President Kassym-Jomart Tokayev. The project has benefited from strong advocacy and coordination across the Trump Administration, including the U.S. Trade Advocacy Center and senior officials focused on strengthening allied critical minerals supply chains.

Tungsten is widely recognized as a critical mineral due to its exceptional density, hardness, and highest-in-metal melting point, making it indispensable in advanced industrial and defense applications. With China controlling more than 80% of global tungsten supply and imposing export controls on tungsten to the United States in February 2025, the Northern Katpar and Upper Kairakty projects represent a transformative step toward long-term supply chain resilience.

Strengthening Kazakhstan’s Role in the Global Critical Minerals Market

The development of Northern Katpar and Upper Kairakty represents a major step in positioning Kazakhstan as a leading global producer of high-value tungsten products. By establishing domestic deep-processing capacity for ammonium paratungstate and other tungsten compounds, the project advances Kazakhstan’s industrial diversification and enhances its role in the global critical minerals supply chain. The investment is expected to generate approximately 2,000 jobs across construction and operations, attract substantial foreign direct investment, and contribute long-term economic growth. At the same time, the partnership deepens strategic and economic ties between Kazakhstan and the United States, reinforcing a shared commitment to resilient, transparent, and mutually beneficial supply chains for essential minerals.

About Cove Kaz Capital Group

Cove Kaz Capital Group is a portfolio company of Cove Capital LLC, a mining focused investment and development firm founded in 2015 with headquarters in New York. Since 2018, Cove Capital has focused on critical minerals, identifying, investing in, and advancing projects that strengthen United States and allied supply chains. Led by Pini Althaus, the firm brings deep sector expertise and hands-on experience spanning exploration, mine development, processing, and long-term offtake strategy.

Through Cove Kaz, this experience is applied in Kazakhstan, where the company holds a 70% interest in Severniy Katpar LLP, a joint venture with Kazakhstan’s national mining company Tau Ken Samruk, which holds the remaining 30%. The partnership is advancing the Northern Katpar and Upper Kairakty tungsten deposits, among the most significant undeveloped tungsten resources globally, through feasibility, permitting, construction, and planned commercial production. Together, Cove Kaz and its partners are building a long term, reliable supply of tungsten to support strategic industrial and defense needs in the United States.

About Cove Capital LLC

Cove Capital, founded in 2015, is a mining-focused firm with its head offices in New York and Melbourne, Australia. Since 2018, the company has concentrated on critical minerals—identifying, investing in, and developing projects that support U.S. and allied supply chains. Under the leadership of Pini Althaus, Cove Capital brings deep sector knowledge and hands-on development experience across exploration, mining, processing, and offtakes.

About Tau-Ken Samruk

Tau-Ken Samruk is the national mining company of Kazakhstan, overseeing the efficient development of the country’s mineral resources. Committed to innovation and sustainability, Tau-Ken Samruk collaborates with domestic and international partners to enhance the competitiveness of Kazakhstan’s mining sector and support economic growth.

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