Kazakhstan's Critical Minerals: The US Beats China to a Major Tungsten Mine Project in Kazakhstan

Media: The US Cove Capital will reach an agreement with Kazakhstan to mine tungsten under the deal announced by Trump

Washington (Reuters) - According to a deal to be announced by the Trump administration on Thursday, the mining investment company Cove Capital will partner with Kazakhstan's state-owned mining company JSC Tau-Ken Samruk to develop a major tungsten mine in Kazakhstan.

This agreement is part of a series of agreements announced by Washington and Astana to strengthen the economic partnership between the two countries.

A document seen by Reuters shows that Cove Capital will control 70% of the joint venture and the right to sell the metal, while Tau-Ken Samruk will control the remaining 30%. The development involves the Northern Katpar and Upper Kairakty tungsten deposits located in the Karaganda region of eastern Kazakhstan. The project is expected to cost $1.1 billion, and the US Export-Import Bank has issued a letter of intent to provide $900 million in funding.

Tungsten is a metal used in various industries to harden steel and is considered a critical mineral by the US government. The US has not mined tungsten since 2015, while China is the world's largest tungsten producer to date. The document shows that the supply of tungsten from the Kazakhstan project will "prioritize the needs of the US government and American businesses."

Pini Althaus, CEO of Cove, told Reuters: "This is a landmark victory for the US and its critical mineral needs."

Althaus, who previously served as CEO of a US rare earth company, said that President Donald Trump and Commerce Secretary Howard Lutnick personally participated in the negotiation of this agreement to prevent Chinese companies from developing the mineral resources.

"From the perspective of the United States, this area has been highly developed, and vice versa," said US Deputy Secretary of State Christopher Landau at the C5+1 Business Meeting held at the Kennedy Center on Thursday, where Kazakh officials also attended.

Althaus said that the construction of the mine should start within two years, production should begin within three and a half years, and the refining will also take place within Kazakhstan.

Original: www.toutiao.com/article/1848155632233475/

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