Cove Kaz Capital to develop $1.1B tungsten project in Karaganda
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Cove Kaz Capital Group, a US investment firm, announced plans to develop the Severny Katpar and Verkhny Kairakty tungsten deposits in Karaganda region, with total mineral resources estimated at 1.4 million tonnes of tungsten trioxide. The project, valued at $1.1 billion, is expected to create over 2,000 jobs and produce up to 12,000 tonnes of ammonium paratungstate per year.
Project Structure
Cove Kaz Capital holds a 70% stake in Severny Katpar LLP, which holds the licenses for both deposits. The remaining 30% is owned by Tau-Ken Samruk, Kazakhstan's national mining company. The partnership aims to develop one of the world's largest undeveloped tungsten resource bases, with combined mineral resources of approximately 1.4 million tonnes of tungsten trioxide according to the JORC international standard.
Production Plans
The project envisions a full-cycle production facility capable of producing up to 12,000 tonnes of ammonium paratungstate annually. This includes mining, beneficiation, and a hydrometallurgical plant for processing. Ammonium paratungstate is a key intermediate product used to manufacture tungsten powders, tungsten carbide, hard alloys, cutting tools, and drilling equipment components.
Economic Impact
Ruslan Asimov, Deputy Chairman of the Board of Cove Kaz Capital, stated that the project will create over 2,000 jobs and develop domestic production competencies. It also aims to strengthen Kazakhstan's position in the critical minerals market. The specific parameters of the production complex, investment volume, and launch dates are to be determined within the next 18 months.
What's Next
The project partners will finalize the production complex parameters, investment volume, and launch timeline over the next 18 months. It remains unclear how the project will be financed and whether it will face regulatory or logistical hurdles.
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Cove Kaz Capital to develop $1.1B tungsten project in Karaganda
