In Strategic Pivot, U.S. Firm Cove Capital to Mine Critical Tungsten in Kazakhstan in Trump-Announced Deal

In a significant move to secure a supply of a mineral vital to national defense and advanced manufacturing, the Trump administration is set to announce a major agreement on Thursday for U.S.-based mining investment firm Cove Capital to develop a large-scale tungsten deposit in eastern Kazakhstan.

The deal, to be formalized with Kazakhstan’s state-owned mining company JSC Tau-Ken Samruk, establishes a joint venture that will see Cove Capital hold a controlling 70% stake and manage sales of the metal. Tau-Ken Samruk will hold the remaining 30%, according to a project document reviewed by Reuters.

A Generational Win to Counter Chinese Dominance

The agreement is a centerpiece of a broader package of economic partnerships between Washington and Astana, designed to strengthen ties and diversify supply chains for critical resources. Tungsten, a metal used to harden steel for everything from cutting tools and drill bits to armor-piercing ammunition and aerospace components, is classified as a “critical mineral” by the U.S. government. The United States has not had domestic tungsten production since 2015 and is currently entirely reliant on imports, with China controlling over 80% of global supply and refining.

“This is a generational win for the U.S. and its critical minerals needs,” Cove Capital CEO Pini Althaus told Reuters. “It fundamentally alters the supply chain dynamic for a metal that is essential for our military and industrial base.”

Althaus, who previously led USA Rare Earth, revealed that the deal was the result of high-level diplomatic and commercial intervention. He said President Donald Trump and Commerce Secretary Howard Lutnick were personally involved in negotiations to ensure the asset was developed by a U.S.-led consortium, preempting interest from Chinese state-owned enterprises.

Financing and Project Timeline

The development of the Northern Katpar and Upper Kairakty projects is estimated to cost approximately $1.1 billion. In a strong signal of U.S. government support, the Export-Import Bank of the United States (EXIM) has issued a letter of interest to provide up to $900 million in project financing.

According to Althaus, mine construction is slated to begin within two years, with production expected to commence within three and a half years. The venture plans to conduct the entire process, from mining to refining, within Kazakhstan, creating a new, non-Chinese stream of finished tungsten for the global market. The project document states that output will be used “to prioritize U.S. government and American commercial needs.”

Deepening Ties in a “Very Under-Explored” Region

The deal underscores a concerted U.S. effort to deepen economic and diplomatic engagement in Central Asia, a region traditionally within Russia’s sphere of influence and increasingly a focus of China’s Belt and Road Initiative.

“This has just been a very under-explored part of the world, from a U.S. point of view, and vice versa,” Deputy Secretary of State Christopher Landau said at a C5+1 business conference event at the Kennedy Center on Thursday, which included senior officials from Kazakhstan. The C5+1 diplomatic format includes the five Central Asian nations and the United States.

Strategic Implications

Analysts see the agreement as a clear strategic victory for the Trump administration’s policy of securing resilient supply chains for critical materials.

“The Kazakhstan tungsten deal is about more than just mining,” explained Dr. Sarah Jensen, a senior fellow at the Center for Strategic and International Studies. “It’s a tangible demonstration of the U.S. offering an economic alternative to China’s Belt and Road in a resource-rich, strategically located country. For Kazakhstan, it represents a welcome diversification of its economic partnerships beyond Beijing and Moscow.”

The success of the project could pave the way for further U.S. investment in Kazakhstan’s vast mineral wealth, which includes other critical materials like copper, chromium, and rare earth elements, potentially redrawing the geopolitical map of resource security.

  Donate Here