Kazakhstan’s state mining company Tau-Ken Samruk has signed a series of agreements with US-based Cove Capital for the joint development of the Northern Katpar and Verkhneye Kairakty deposits, according to a press release from Samruk-Kazyna.
The projects are expected to form the raw-material base for establishing deep tungsten processing in Kazakhstan. As part of the Northern Katpar project, the partners plan to produce ammonium paratungstate, a key intermediate product used in high-tech and industrial applications.
To implement the projects, Cove Capital will secure no less than $1.1 billion in financing. Of this amount, $900 million is expected to be provided by the Export-Import Bank of the United States. In addition to financing, the American side will provide technological support for mining, processing, and beneficiation operations. The US will also facilitate exports to global markets, including arranging offtake contracts with US authorities.
The two deposits contain an estimated 410,000 tonnes of tungsten. According to the mine development plan presented this week by Northern Katpar, sales of tungsten trioxide, molybdenum, copper, and bismuth are projected to generate more than 1 trillion tenge (approximately $2 billion) in revenue between 2030 and 2048.
The parties initially agreed on joint development of the deposits in November last year. According to Reuters, Cove Capital will hold a 70 percent stake in the joint venture, while Tau-Ken Samruk will retain 30 percent.
