MINEX Forum

Tag: Cove Capital

  • Cove Capital Explores Rare Earth Metals in Kazakhstan’s Kostanay Region

    Cove Capital Explores Rare Earth Metals in Kazakhstan’s Kostanay Region

    The American investment firm Cove Capital is actively exploring potential rare earth metal deposits in Kazakhstan’s Kostanay region. The project is partnered with the Kazakh company Kazgeology, which is part of the “Tau-Ken Samruk” structure. The geological exploration is being funded by Cove Capital, according to an interview with Pini Althaus, managing partner and founder of the company, published in the Kazakh outlet “Kursiv.”

    “The site contains a variety of rare earth metals, with a primary focus on four elements used in the production of permanent magnets: neodymium, praseodymium, dysprosium, and terbium,” said Mr. Althaus. The deposit also has significant reserves of yttrium, for which supply and demand are yet to be fully assessed.

    The project is currently in the early stages of implementation, with preliminary feasibility studies indicating the presence of 380,000 tons of rare earth metals. Mr. Althaus noted, “The project looks promising, which is why we invested in it, and we hope it becomes a major rare earth project.”

    However, the profitability of the mining operation remains uncertain, as partners need to confirm the feasibility of extracting these high-value materials. “It will take several years to develop the resource, ensure the metals can be processed, and verify our reserves before we start considering mining scenarios and profitability,” explained the managing partner of Cove Capital.

    Cove Capital holds 11 concessions for the development of critical materials such as lithium, beryllium, tantalum, rhodium, cesium, rubidium, and tin in Eastern Kazakhstan. Represented by its subsidiary, KAZ Critical Minerals, Cove Capital relies on data from Soviet-era geological surveys, refined with modern technologies and research methods.

    Additionally, Cove Capital is in discussions with the Kazakh government regarding the construction of a rare earth metals processing plant, with capital investment potentially reaching $500 million. This facility could serve as an industrial hub and an alternative to exporting these metals to China.

    Founded in 2016, Cove Capital invests in the mining industry, with projects focused on critical minerals, precious metals, and base metals in North America, Australia, Argentina, and other countries.

  • Kaz Critical Minerals LLP Begins Drilling Activities in East Kazakhstan

    Kaz Critical Minerals LLP Begins Drilling Activities in East Kazakhstan

    Kaz Critical Minerals LLP, a wholly-owned subsidiary of Kaz Resources LLC and a portfolio company of Cove Capital LLC—a leading player in the global critical minerals industry, has commenced drilling activities and its 2024 geological programs in East Kazakhstan. This marks a significant milestone in its exploration endeavors and underscores the Company’s commitment to developing Kazakhstan’s rich critical minerals potential.

    “We commend the cooperation between the United States and Kazakhstan on critical minerals development, and we anticipate very promising results from this phase of our operation. This initiative demonstrates the potential for successful U.S. foreign direct investment in Kazakhstan’s rare earth and critical minerals sector,” said Pini Althaus, Chief Executive Officer of Kaz Resources LLC. “Through extensive investments in exploration and eventual production, we aim to substantially contribute to the local Kazakh economy and the global transition to sustainable energy and advanced technology,” Mr. Althaus added.

    Kazakhstan possesses significant mineral wealth, including 17 critical materials on the U.S. Department of Energy’s Critical Materials List. In 2023, Kazakhstan and the United States signed a memorandum of cooperation on geology, and the active bilateral dialogue continues with a strong emphasis on geological exploration and critical minerals development.

    “Cove Capital was an early entrant to the rare earths and critical minerals sector in East Kazakhstan, and we appreciate the ongoing and mutually beneficial cooperation at the highest levels of the U.S. and Kazakh governments,” said Mr. Althaus. “Kazakhstan is an abundantly mineral-rich country that can serve a multitude of manufacturing and industrial sectors. With the new approach and mandate President Kassym-Jomart Tokayev has led on the development of the country’s critical minerals reserves, Kazakhstan is well positioned to become a global leader in this sector,” added Mr. Althaus.

    Kaz Resources LLC & Cove Capital LLC in Kazakhstan
    In 2023, Kaz Resources LLC (through its wholly-owned subsidiary Kaz Critical Minerals LLP), became the first U.S. company to receive critical minerals and rare earths land concessions in Kazakhstan. These concessions include minerals such as rare earth elements, lithium, tantalum, beryllium, niobium, cesium, and tin.

    In September 2023, Cove Capital LLC entered into an MoU with Kazakhstan’s Sovereign Wealth Fund, Samruk Kazyna, as part of the cooperation on critical raw materials, specifically rare earth metals. On April 8, 2024, Cove Capital LLC announced a landmark collaboration with Tau-Ken Samruk, Kazakhstan’s national mining company, aimed at advancing the exploration and development of rare earth and critical metals within the Republic of Kazakhstan. This partnership demonstrates a significant milestone in Cove Capital’s mission to drive innovation and sustainable development in the rare earth industry.

    In the groundbreaking development, Tau-Ken Samruk (via “Kazgeology” JSC), entered into a binding joint venture agreement with Cove Capital for geological exploration on the Akbulak rare earth project in the Kostanay region of Kazakhstan. Historical reserves at the site include reserves of rare earth elements, including those used for permanent magnets. To carry out geological exploration work, a joint venture was created between Kazgeology JSC and Cove Capital with the parties’ participation shares: Cove Capital – 75% and Kazgeology JSC – 25%. Cove Capital will fully finance exploration work until reserves are listed on the balance sheet.

    This strategic alliance underscores Cove Capital’s commitment to leveraging its expertise and financial resources to unlock the potential of Kazakhstan’s rich mineral reserves.

  • Kazakhstan’s “Tau-Ken Samruk” Partners with US Investors for Rare Metals Exploration

    Kazakhstan’s “Tau-Ken Samruk” Partners with US Investors for Rare Metals Exploration

    In a significant development, Kazakhstan’s mining company “Tau-Ken Samruk” has entered into a collaboration agreement with Cove Capital, a US-based organization, aimed at exploring Rare Metals (RM) and Rare Earth Metals (RZM) within the Republic of Kazakhstan (RK). The partnership entails joint geological exploration activities, particularly in the Kostanay region, as disclosed in a Telegram channel of the “Samruk-Kazyna” fund. The exploration focus will center on the Akbulak deposit near Arkalyk, with Cove Capital committed to fully funding the exploration until the resources are officially registered. While detailed project information remains scarce, it’s notable that the foreign entity and Tau-Ken Samruk’s subsidiary, “Kazgeology,” will establish a joint venture for this endeavor. Previously, experts from Kazgeology had hinted at the potential richness of the Akbulak site in RM and RZM, including yttrium, cerium, thulium, zirconium, lutetium, tin, and others. The company’s attempt to attract investors for the development of these reserves dates back to 2019. Forecasts estimate the resources of this area to be around 380,000 tonnes. This collaboration follows the signing of documents between “Samruk-Kazyna” and Cove Capital last September, indicating a broader partnership in critical raw materials.