What's Happening?
Cove Capital LLC has secured the largest tungsten project in the world, located in Kazakhstan, as part of its strategy to supply critical minerals to the United States and its allies. The project, structured
as a joint venture with Kazakhstan's national mining company, JSC Tau-Ken Samruk, contains over 10% of global tungsten reserves. The U.S. government supports the venture with a letter of interest for USD$900 million from the Export-Import Bank of the United States. The project aims to develop a comprehensive supply chain for tungsten, including mining, refining, and downstream production.
Why It's Important?
This development is significant for the U.S. clean-energy and defense supply chain, as it addresses the reliance on foreign sources for critical minerals. Tungsten is essential for various industries, including electronics and defense, and the project helps reduce dependency on China, which controls a majority of global tungsten reserves. The venture represents a strategic shift in U.S. policy towards securing critical minerals through international partnerships, enhancing national security and economic stability.
