Kazakhstan and the U.S. have signed a memorandum of understanding on critical minerals.
Signed in the presence of Kazakh President Kassym-Jomart Tokayev in Washington, the agreement aims to enhance Kazakhstan-U.S. cooperation in extracting and processing critical minerals.
Minister of Industry and Construction Yersaiyn Nagaspayev signed the memorandum for Kazakhstan, while Commerce Secretary Howard Lutnick signed on behalf of the U.S.
Cove Capital’s involvement
As reported by E&E News, the Trump administration indicated it may offer up to $900 million to help a U.S. company develop one of the world’s largest untapped tungsten deposits in Kazakhstan. The metal is used by the Pentagon for military equipment.
Notably, Cove Kaz Capital, part of the U.S.-based Cove Capital group, has been negotiating with the Kazakh side for months, competing with a Chinese firm that is offering prices above the market. As a result, Cove Kaz Capital sought U.S. government support to secure financing.
Pini Althaus, CEO of Cove Capital and Cove Kaz Capital, said in a statement that President Donald Trump and his administration «brought the acquisition to the finish line.»
Strategic minerals market
The deal coincided with Trump’s welcoming of Central Asian leaders to Washington, D.C., for the C5+1 summit, following his Asia tour, during which he signed mineral resource agreements.
According to data released by the U.S. Geological Survey (USGS) in 2014, global tungsten reserves total about 3.5 million tons. The largest deposits are concentrated in China (1.9 million tons), followed by Canada (290,000 tons), Russia (250,000 tons), the U.S. (140,000 tons), Bolivia (53,000 tons), Austria (10,000 tons) and Portugal (4,200 tons).
Meanwhile, Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, lists two deposits on its website — Upper Kairakty and North Katpar — which, according to the fund, «will make Kazakhstan a major player in the global tungsten market.»
