The American investment company Cove Capital and the Kazakh Tau-Ken Samruk JSC will jointly develop deposits tungsten The project will be part of the economic cooperation program between the United States and Kazakhstan.
Cove Capital is going to develop the North Katpar and Upper Kairakty fields in eastern Kazakhstan. The new venture is being implemented with the participation of the state mining company Tau-Ken Samruk and with the support of the US government.
As part of the agreement, Cove Capital will receive a controlling stake – 70% of the shares of the joint venture, and Tau-Ken Samruk will become the owner of the remaining 30%. The American side is entrusted with the functions of project management, export and sales of products. The total development cost is $1.1 billion. The U.S. Export-Import Bank will contribute up to $900 million as part of the deal.
Tungsten – metal, indispensable in mechanical engineering, aircraft manufacturing and the defense industry. Due to its high strength, it is used in the production of tool steel, electronics and armor alloys. In the United States, tungsten mining has ceased since 2015, making Kazakhstan a potentially important strategic partner. Moreover, the largest producer and supplier of this metal is China.
According to company representatives, construction of the mining complex is planned in the next two years. The launch of production facilities, including an enrichment plant, is expected approximately three and a half years after the start of the project. All stages of production and processing will take place on the territory of Kazakhstan.
The material was prepared with the support of the Russian Ministry of Education and Science as part of the Decade of Science and Technology.
Source: Reuters
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