What's Happening?
Cove Kaz Capital Group has finalized a financial transaction to acquire a 70% ownership interest in Severniy Katpar LLP, which holds licenses for the Northern Katpar and Upper Kairakty tungsten deposits
in Kazakhstan. This acquisition is part of a joint venture with Tau-Ken Samruk National Mining Company. The deposits are expected to produce approximately 12,000 metric tonnes of tungsten trioxide annually, representing about 15% of current global production. The company plans to commence a Definitive Feasibility Study in the second half of 2026 to further develop these resources.
Why It's Important?
This acquisition positions Cove Kaz Capital Group as a significant player in the global tungsten market, which is crucial for various industrial and defense applications. The development of these deposits could secure a long-term supply of tungsten, reducing reliance on other major producers and potentially stabilizing prices. The U.S. government and commercial parties are expected to benefit from offtake agreements, ensuring a steady supply of this critical mineral.
What's Next?
Cove Kaz Capital Group will proceed with an upgraded Definitive Feasibility Study in 2026, focusing on resource optimization and mine planning. The development will be overseen by Dominic Heaton, who has experience in large-scale tungsten operations. The project aims to advance through feasibility, permitting, and development stages towards commercial production, with the goal of establishing a secure supply chain for tungsten.
