Kazakhstan’s sweeping steppes may soon become the focal point of a global shift in critical mineral supply chains. With an estimated 2 million tons of untapped tungsten reserves, the Central Asian nation is emerging as a potential powerhouse in a market vital to defense, clean energy, and advanced manufacturing. Ongoing negotiations between Washington and Astana could lead to the first large-scale, U.S.-backed tungsten mining operation in the region, underscoring Western efforts to reduce dependence on Chinese-controlled supply chains.
Kazakhstan’s Tungsten Wealth: A Strategic Resource Reawakens
Two massive deposits — Upper Kairaktinskoye and North Katpar in the Karaganda region — anchor Kazakhstan’s tungsten potential. Industry insiders estimate the sites are worth billions of dollars and could sustain production for up to four decades. While the U.S. Geological Survey (USGS) does not list Kazakhstan among the top tungsten holders, the country’s own geological data points to reserves exceeding 2 million tons, suggesting international underreporting of Central Asia’s mineral wealth.
Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, has described these sites as the world’s most desirable undeveloped tungsten deposits and is actively soliciting bids from foreign investors.
From Dormancy to Development
Tungsten mining in Kazakhstan halted more than 30 years ago following the Soviet Union’s collapse, as infrastructure decay, capital flight, and regulatory uncertainty halted operations. That long pause has left enormous reserves untouched — a rare opportunity for new investment at a time when global tungsten demand continues to climb.
Strategic Importance of Tungsten
Tungsten’s exceptional hardness, density, and heat resistance make it irreplaceable in defense and high-tech industries. It is a critical component in ammunition, projectiles, armor-piercing shells, and advanced weapon systems, earning a place on the U.S. Geological Survey’s list of critical minerals. The Pentagon’s Defense Logistics Agency identifies tungsten as a material of strategic importance, with supply disruptions posing potential risks to U.S. defense manufacturing and economic stability.
Key Players in a High-Stakes Negotiation
The leading U.S. contender, Cove Kaz Capital Group LLC, has positioned itself at the center of the negotiations. Building on its 2025 partnership with Kazakhstan’s JSC Qazgeology on rare earth exploration, Cove Kaz Capital aims to establish majority control of the tungsten venture while ensuring Kazakhstan retains a significant profit share.
The company’s responsibilities would include mine development, local processing infrastructure, and export logistics, with a commitment to technology transfer and workforce development within Kazakhstan.
For Samruk-Kazyna, the deal aligns with national goals of diversifying the economy, modernizing the mining sector, and expanding export markets beyond traditional partners like Russia and China. The fund’s competitive tendering process has attracted multiple international bidders, ensuring Kazakhstan maximizes both revenue and strategic leverage.
U.S. Government’s Direct Role
The unusual direct involvement of U.S. Commerce Secretary Howard Lutnick in the negotiations underscores the project’s geopolitical weight. Washington views the partnership as part of a wider strategy to secure critical mineral supply chains and implement former President Trump’s executive order prioritizing access to strategic materials such as tungsten.
For the U.S., success in Kazakhstan could represent a decisive step toward reducing vulnerability to supply shocks and strengthening control over critical materials vital to both defense and green technologies.
