Kazakhstan’s national mining company Tau-Ken Samruk and Cove Kaz Capital Group LLC (a subsidiary of the American investment and industrial holding Cove Capital LLC) have signed a Binding Term Sheet outlining the key terms for the joint production of high-value tungsten products in Kazakhstan. The project will be developed based on the Verkhneye Kairakty and Severny Katpar deposits in the Karaganda region, The Caspian Post reports, citing the press service of the National Mining Company Tau-Ken Samruk (Kazakhstan).

These deposits are among the largest tungsten reserves in the world, with total resources estimated at 410,000 tons of tungsten trioxide (WO₃).

For reference, a binding term sheet is a legally binding document that defines the key commercial and legal terms of a transaction and serves as the foundation for the subsequent conclusion of major contracts and agreements.

Cove Capital LLC is a U.S.-based investment and industrial holding founded in 2015. The company invests in mining projects from the exploration stage through construction and development. Since 2008, the firm has specialized in projects involving critical minerals. Cove Capital operates offices in the United States and Australia.

The project involves establishing a full technological cycle, from ore extraction and processing to advanced metallurgical production. Such a project is being implemented in Kazakhstan for the first time and includes the construction of two modern beneficiation plants and a hydrometallurgical processing facility.

The planned production capacity will reach 9,300 tons of ammonium paratungstate (APT) annually.

Nariman Absametov, Chairman of the Management Board of Tau-Ken Samruk, said:

“The Severny Katpar project represents a completely new example of technological and investment cooperation for Kazakhstan. Together with our strategic partner, we are creating a processing facility that has no equivalent in the country. The new production will establish a full value chain - from mining to the manufacture of the final product in the form of ammonium paratungstate. This means thousands of jobs, export revenues, and a significant strengthening of the republic’s industrial and technological potential. The project fully aligns with Kazakhstan’s national interests and will help position the country among the leaders of the global critical metals market.”

The total value of the project, including capital and operating expenditures, is estimated at $1.1 billion (over 600 billion tenge).

Under the agreement reached between the parties, the American side will provide full project financing, as well as the technological and marketing components of the initiative.

The agreement also provides for the establishment of a joint venture between Tau-Ken Samruk and Cove Kaz Capital Group LLC.

The American partner will ensure the transfer of advanced processing and beneficiation technologies, as well as the promotion of finished products on international markets. This includes securing offtake agreements with major global tungsten consumers.

Such arrangements guarantee stable demand and consistent utilization of the future production facilities - a particularly important factor given that the global tungsten market is highly concentrated and effectively controlled by a limited number of producer countries.

photo: vnedra.ru

Tau-Ken Samruk, in turn, will provide legal oversight and ensure compliance with all national regulations, including environmental standards, while safeguarding the strategic interests of the Republic of Kazakhstan.

This partnership model enables the implementation of a large-scale project without attracting public funds, minimizing investment risks for the country while preserving influence and control over key strategic decisions.

Currently, the partners have begun work on developing a long-term strategy for managing and advancing the project. According to Cove Capital LLC, negotiations are underway with U.S. financial institutions, including the U.S. Export-Import Bank and the U.S. International Development Finance Corporation, regarding potential financing.

During the operational phase of the deposits, total tax revenues are expected to reach approximately $1.45 billion, including mineral extraction tax, corporate income tax, environmental payments, and other contributions. The project is expected to create around 1,200 jobs.

The development will be implemented in accordance with international ESG and HSE standards, and will include training and professional development programs for Kazakh specialists.

The project will create new industrial capacity, contribute to the development of domestic processing industries and related sectors, increase value added within the country, and generate a positive multiplier effect for Kazakhstan’s economy.

The construction of an ammonium paratungstate (APT) production plant will allow Kazakhstan to move from exporting raw materials and concentrates to producing high value-added products, reducing dependence on a narrow group of concentrate buyers that currently influence global pricing.

APT production will enable Kazakhstan to become a full-fledged player in the global high-tech materials market.

For reference, ammonium paratungstate (APT) is a product obtained from tungsten concentrate through chemical and metallurgical processing.

Unlike tungsten concentrate, APT is a high-purity intermediate product with stable global demand, as it serves as standardized raw material for producing tungsten powders, tungsten carbide, and tungsten alloys.

These materials are widely used worldwide to manufacture wear-resistant components, cutting tools, heavy alloys, and elements for the aerospace and defense industries. APT is also the primary transportable compound of tungsten in global trade.

Secondary applications of APT include the production of tungstic acid, used in the manufacturing of enamels and paints, as well as ammonium metatungstate and other tungsten compounds.

The unique physical and chemical properties of tungsten, including its extremely high melting point (over 3400°C), density, strength, and corrosion resistance, make it one of the most sought-after industrial metals. More than 60% of global tungsten consumption is used in the production of tool and drilling alloys.

Key areas of application include:

• mechanical engineering and metal processing

• mining industry

• oil and gas sector

• electronics and electrical engineering

• aerospace industry

• energy and thermal engineering

• green energy and environmental technologies

• chemical industry and catalysis

• lighting technologies and optics

• medicine and scientific research