Cove Kaz Capital Group plans up to $ 2 billion tungsten development project in Kazakhstan
U.S. based Cove Kaz Capital Group is advancing the development of Kazakhstan’s major tungsten deposits at Northern Katpar and Upper Kairakty in the Karaganda region, with the total investment in the two projects reaching $ 2 billion. The development is being carried out through a joint venture with Kazakhstan’s national mining company Tau-Ken Samruk, in which Cove Kaz Capital Group holds a 70% controlling stake and Tau-Ken Samruk retains the remaining 30%.
The company has begun the practical development phase at the Northern Katpar deposit, including site preparation and further exploration work. A definitive feasibility study, which will establish the final technical and financial parameters of the project and support the final investment decision, is expected to be completed by the end of 2027. The development will then progress through detailed engineering, construction and commissioning.
Initial investment in the project had been estimated at $ 1.1 billion, but the overall cost of developing both Northern Katpar and Upper Kairakty, including the required mining, processing and metallurgical facilities, could rise to around $ 2 billion. The project includes plans to construct processing facilities for both deposits as well as a mining and metallurgical complex.
Production at Northern Katpar is currently expected to begin in 2030, with annual output projected at approximately 5,000 tonnes of tungsten. The Upper Kairakty deposit is expected to add a further 7,000 tonnes per year.
The development is also expected to generate significant employment. Preliminary estimates suggest the projects could create between 1,900 and 2,500 direct jobs, alongside a further 1,500 to 2,000 jobs in maintenance, contracting and related services, potentially supporting up to 5,000 jobs in total.
The investment is significant for Kazakhstan as it strengthens the country’s position in the global market for critical minerals. Developing large-scale domestic mining and processing capacity could also allow Kazakhstan to capture more value from its mineral resources while attracting major international investment.
Source:
Comments