The Trump administration is negotiating for the American company Cove Capital to gain access to one of the world’s largest undiscovered tungsten deposits in Kazakhstan, Bloomberg reported. The metal is used by the Pentagon to produce ammunition, shells and other weapons.
U.S. Commerce Secretary Howard Lutnick has helped arrange negotiations between Cove Kaz Capital Group LLC, part of the Cove Capital investment group, and Samruk-Kazyna, Kazakhstan’s sovereign wealth fund. They are discussing a bid to develop two major tungsten deposits in Central Asia, according to people familiar with the discussions.
Sources said Cove Kaz Capital has been negotiating with Samruk-Kazyna for months but is facing strong competition from a Chinese state-backed firm offering above-market prices. Because of this, Cove Kaz Capital requires U.S. support to secure the necessary financing for the deal.
Financial backing could come from U.S. federal agencies such as the U.S. International Development Finance Corp. and the Export-Import Bank.
Samruk-Kazyna lists two deposits on its website — Upper Kairakty and North Katpar — which, according to the group, «will make Kazakhstan a major player in the global tungsten market.»
Notably, earlier this year, Cove Kaz Capital announced a joint venture with Kazgeology JSC, Kazakhstan’s national geological company, to develop a rare earth mining project. Kazakhstan holds over 2 million tons of tungsten reserves, and the new mines are expected to operate for 30 to 40 years.
