Mining investment firm Cove Capital will develop a large tungsten deposit in Kazakhstan with state mining firm JSC Tau-Ken Samruk under a deal to be announced by the Trump administration, reported Reuters.
The agreement is part of a suite of deals announced between Washington and Astana to tighten economic partnerships between the countries.
Cove Capital will control 70% of a joint venture and sales of the metal, with Tau-Ken Samruk controlling the remaining 30%, according to a document seen by the news agency. Costs to develop the Northern Katpar and Upper Kairakty projects – in the country’s east – are estimated at $1.1 billion, while the U.S. Export-Import Bank has issued a letter of interest to fund $900 million.
Supplies of the metal from the Kazakhstan projects will be used “to prioritize U.S. government and American commercial needs,” according to the document.
Cove CEO Pini Althaus told Reuters that mine construction should start within two years and production should commence within 3-1/2 years, with refining also occurring inside Kazakhstan.
Source: Reuters