U.S. government lenders are reportedly hesitant to approve $1.6 billion in financing for a tungsten venture in Kazakhstan associated with Donald Trump’s sons, Eric Trump and Donald Trump Jr. Concerns regarding the project’s commercial viability and geopolitical risks have led to this cooling of interest, as reported by Bloomberg on 10 November 2026.
The venture, linked to Cove Kaz Capital Group, had previously received letters of interest from the U.S. Export-Import Bank and the International Development Finance Corporation. However, these letters were merely expressions of interest rather than formal loan approvals. Officials are particularly wary of Kazakhstan’s geopolitical position between China and Russia, which adds layers of complexity to the project’s prospects.
Pini Althaus, executive chairman of Cove Kaz, stated that the company has not received any formal indication of withdrawn support and does not plan to apply for loans until a feasibility study is completed next year. A representative from the Development Finance Corporation confirmed that the agency is not currently pursuing a transaction with Cove Kaz.
The planned financing would have included up to $900 million from the Export-Import Bank and $700 million from the Development Finance Corporation, aimed at developing the Northern Katpar and Upper Kairakty tungsten projects, located approximately 25 km apart in Kazakhstan. Cove Kaz holds a 70% stake in the venture, while the national mining company Tau-Ken Samruk owns the remaining share. The company anticipates completing the feasibility study for Northern Katpar by the end of 2027 and aims to establish a refinery in Kazakhstan to produce ammonium paratungstate, a key intermediate tungsten product.
The investment connection of the Trump family to this venture is facilitated through Skyline Builders Group, which is publicly listed on Nasdaq. However, Cove Kaz and Skyline Builders recently abandoned their merger plans on 2 November 2026, with Cove Kaz now looking to pursue a direct listing in the U.S. in the first half of 2027. The company has also announced a conditional $32 million equity commitment from American Ventures, suggesting a valuation of approximately $1.97 billion for the venture.
