Cove Kaz Capital Group LLC, a subsidiary of American mining company Cove Capital, has finalized a deal to acquire a 70% ownership stake in a joint venture with Kazakhstan’s national mining company, Tau-Ken Samruk. This venture will develop the Northern Katpar and Upper Kairakty tungsten deposits in Kazakhstan, estimated to contain 1.4 million metric tons of tungsten trioxide. The project, valued at $1.1 billion, aims to establish a long-term, secure supply of tungsten for the United States and its allies, with anticipated annual production of 12,000 metric tons, representing approximately 15% of current global production. The U.S. Export-Import Bank and the Development Finance Corporation have committed up to $1.6 billion to support the project.
The deal has attracted attention due to reported connections between Cove Kaz Capital and Donald Trump Jr. and Eric Trump. A shell company in which the Trump sons reportedly hold a significant stake, Skyline Builders Group Holding Ltd., announced an intention to merge with Cove Kaz Capital. The combined entity is slated to become a publicly traded company on Nasdaq, named Kaz Resources Inc. Cove Capital CEO Pini Althaus has credited direct assistance from former President Trump and other U.S. officials in securing the mine.
The acquisition is a significant step in the Trump administration's broader effort to diversify critical mineral supply chains and reduce reliance on China, which currently dominates the global tungsten market. Tungsten is considered a critical mineral due to its use in drilling tools, armor-piercing bullets, and kinetic energy missiles. While Kazakhstan holds over 2 million metric tons of tungsten reserves, development was halted in the 1990s. The Northern Katpar and Upper Kairakty deposits are considered the largest known undeveloped tungsten resources globally, though some analysts note they are early-stage and will require substantial time and investment to become operational.
