U.S. Strikes $1.1B Tungsten Mining Deal in Kazakhstan

In a major move to strengthen America’s grip on critical minerals, U.S.-based mining investment firm Cove Capital has joined hands with Kazakhstan’s state miner JSC Tau-Ken Samruk to develop one of the world’s largest tungsten deposits. The announcement, expected Thursday by the Trump administration, marks a new era of economic cooperation between Washington and Astana.

Under the agreement, Cove Capital will hold 70% of the joint venture and manage global sales, while Tau-Ken Samruk will retain 30%. The two companies will develop the Northern Katpar and Upper Kairakty projects in eastern Kazakhstan, with total development costs estimated at $1.1 billion.

Backing the deal, the U.S. Export-Import Bank has issued a $900 million letter of interest to support project financing — a clear signal of Washington’s intent to secure a stable, non-Chinese supply of tungsten.

Tungsten, a metal vital for hardening steel used across defense, manufacturing, and technology sectors, has been classified as a critical mineral by the U.S. government. The U.S. has not mined tungsten domestically since 2015, while China remains the world’s dominant producer. The agreement ensures that production from Kazakhstan will prioritize U.S. government and American commercial needs, helping reduce reliance on Chinese supply chains.

Construction on the mines is expected to begin within two years, with production and refining operations planned inside Kazakhstan roughly three and a half years later. The partnership also underscores Washington’s growing interest in Central Asia’s untapped resource potential, part of a broader strategy to deepen regional ties through trade and investment.

At the C5+1 Business Conference in Washington, attended by senior U.S. and Kazakh officials, the initiative was described as a “generational step” toward mineral independence and industrial resilience. The tungsten deal now stands as a cornerstone of renewed cooperation between the two nations — blending resource security with diplomatic strategy.