U.S. investor plans up to $2 billion investment in Kazakhstan tungsten projects

Cove Capital has begun developing Kazakhstan’s largest tungsten project / Photo: Zhanbolat Mamyshev; photo editor: Adelina Mamedova

A ceremony marking the start of the practical phase of a project to develop future production was held Aug. 28 at the Severny Katpar (Northern Katpar) tungsten deposit in the Shet district of Kazakhstan’s Karaganda region.

Severny Katpar is owned by Cove Kaz Capital Group, part of U.S.-based Cove Capital, and national mining company Tau-Ken Samruk, a subsidiary of the state-owned Samruk-Kazyna holding. The deposit contains 71.4 million metric tons of tungsten ore, including 142,000 metric tons of tungsten trioxide, with an average tungsten trioxide grade of 0.234%.

Since July, the company has been preparing the site for further exploration. At the same time, preparations have begun for the project’s definitive feasibility study (DFS), which is scheduled for completion by the end of 2027. The DFS will determine the final parameters for development of the deposit and processing capacity and will serve as the basis for a final investment decision.

Dominic Heaton, CEO of Cove Kaz Capital Group / Photo: Zhanbolat Mamyshev

However, according to Cove Kaz Capital Group CEO Dominic Heaton, the investor’s plans extend beyond developing a single deposit.

He said extracting copper, bismuth and molybdenum alongside tungsten, the project’s primary commodity, will help reduce the overall cost of tungsten production. The associated metals will be sold directly as concentrates in Kazakhstan. The company does not consider further in-house processing of those metals necessary because of the relatively small volumes involved.

Heaton said the project could take 12 to 18 months from the start of tungsten production to reach full capacity. Production is scheduled to begin in 2030, with average annual output at Severny Katpar expected to reach 5,000 metric tons of tungsten. The metal is critical to the production of various alloys used in high-tech applications, ammunition and weapons.

The mine will be built in parallel with a processing plant and a mining and metallurgical complex. This approach is intended to ensure that sufficient raw material is available for processing when the processing and metallurgical facilities are commissioned.

Project costs could rise

Initial investment in the project was estimated at $1.1 billion in 2025, with $900 million expected to be financed by the U.S. Export-Import Bank, according to media reports. However, the project’s estimated cost subsequently rose to $1.6 billion.

Heaton said the total cost of developing Severny Katpar and Upper Kairakty, including construction of the necessary facilities, would likely be «closer to $2 billion.» The exact cost is expected to be determined in 2027 upon completion of the DFS.

Daniyar Idrissov, chief business development officer at Tau-Ken Samruk, said that under the signed agreement, Cove Capital, the ultimate owner of a 70% stake in Severny Katpar, is responsible for providing 100% of the agreed $1.1 billion investment in the project.

Tau-Ken Samruk, which holds the remaining 30% stake in Severny Katpar, is participating in the project by contributing its mining license and is not required to provide cash funding for development.

The U.S. investor is required to commission two processing plants and a mining and metallurgical plant, with an investment of at least $1.1 billion. However, regardless of whether the final investment is above or below the stated amount, the primary obligation is to commission processing plants at both deposits and the mining and metallurgical complex.

The investment must cover not only the commissioning of the facilities but also the bringing them to design capacity and the transfer of the necessary technology.

According to preliminary estimates cited by Heaton, the project is expected to create 1,900 to 2,500 direct jobs. An additional 1,500 to 2,000 support jobs related to facility maintenance and contracting are also expected to be created. In total, the project could support 4,000 to 5,000 jobs, he said.

In May 2026, Cove Kaz Capital Group LLC, which media reports have linked to Donald Trump Jr. and Eric Trump, sons of President Donald Trump, completed the acquisition of a 70% stake in Kazakh company Severny Katpar LLP, part of Samruk-Kazyna, in a deal valued at $114.8 million. Severny Katpar is developing the tungsten deposit of the same name.