The definitive feasibility study for Kazakhstan’s Northern Katpar and Upper Kairakty tungsten deposits in Karaganda Region will take between 15 and 18 months to complete, with actual capital requirements to be determined only once the study is finished, Cove Kaz Capital CEO Dominic Heaton told inbusiness.kz on the sidelines of the Astana Mining and Metallurgy Congress.
“We expect that completing this will take somewhere between 15 and 18 months,” Heaton said. The company previously acquired a 70% stake in Severniy Katpar LLP, which holds the subsoil use rights to both deposits, from state mining holding Tau-Ken Samruk, which retains a 30% interest.
Heaton clarified the relationship between the feasibility study and the financing packages that have been publicly discussed — including $900 million from the US Export-Import Bank, up to $700 million from the US International Development Finance Corporation and $400 million from the Pentagon. “By our contract, the obligation for the volume of direct foreign investment is $1.1 billion. After we complete the definitive feasibility study, we will understand what the absolute capital requirements are. So at this point we only have historical study data as a starting point. And our commitment is to attract $1.1 billion in direct foreign investment,” he said.
The development model foresees two mines and a processing plant built in phases. Initially, the company plans to launch both mines and begin producing concentrate, while simultaneously constructing the processing facility. During the ramp-up period, some concentrate volumes may be sold externally. Once the mines reach full production capacity, the processing plant is expected to be commissioned and ready to absorb the full output.
In April, Heaton said mining at the two deposits was expected to begin within five years, with annual production targets of 7,000 tonnes at Upper Kairakty and 5,000 tonnes at Northern Katpar.
On sales strategy, Heaton said discussions are underway with potential buyers, with the US government and US industry holding a right of first purchase as part of agreements reached with the Kazakhstani government. Marketing arrangements also need to be aligned with joint venture partner Tau-Ken Samruk. Cove Kaz Capital expressed openness to additional tungsten licence acquisitions in Kazakhstan but said its current focus remains firmly on executing the Northern Katpar and Upper Kairakty projects.
