Cove Kaz Accelerates Kazakhstan Tungsten Project with DFS Launch

Cove Kaz Capital Group LLC has taken a major step toward developing one of the world's largest undeveloped tungsten resources by appointing a consortium of internationally recognized engineering firms to carry out a Definitive Feasibility Study (DFS) for the Northern Katpar tungsten project in Kazakhstan. The project is owned by Severniy Katpar LLP, in which Cove Kaz holds a 70% controlling interest.

The DFS will provide the technical and financial foundation required for the project's Final Investment Decision while supporting due diligence for potential financing partners. These include the U.S. International Development Finance Corporation (DFC), the Export-Import Bank of the United States (EXIM), other U.S. financial institutions, and commercial investors. The study will also pave the way for Front-End Engineering and Design (FEED), followed by detailed engineering, construction, commissioning, and commercial production.

After evaluating several global engineering firms, Cove Kaz selected a specialized consortium to manage different aspects of the project. DRA Global will serve as the lead contractor and oversee mineral processing activities. ERM, a leading sustainability consultancy, will manage geology, mine planning, environmental and social assessments, and regulatory programs. Knight Piésold will handle geotechnical engineering, hydrology, and tailings storage, ensuring long-term operational safety and environmental resilience.

These firms will work alongside Cove Kaz's experienced internal team under Chief Executive Officer Dominic Heaton, who previously led the successful development of the Nui Phao tungsten mine and refinery in Vietnam, the largest tungsten operation outside China.

The DFS will establish the complete mining strategy for Northern Katpar while also guiding the development of a refinery in Kazakhstan that will manufacture ammonium paratungstate (APT), the benchmark intermediate product used in the global tungsten industry.

Executive Chairman Pini Althaus stated that appointing the engineering consortium marks another milestone after site preparation began in July. He emphasized that the project aims to become a reliable tungsten supplier to the U.S., addressing growing global supply shortages. According to the company, existing mines worldwide, including those in China, cannot meet projected long-term demand.

Dominic Heaton added that the DFS is expected to conclude before the end of 2027 and will build upon extensive geological work previously completed by Kazakhstan's national mining company, JSC Tau-Ken Samruk, which owns the remaining 30% stake in Severniy Katpar LLP. Meanwhile, development activities have also begun at the nearby Upper Kairakty tungsten deposit.

Combined, Northern Katpar and Upper Kairakty contain JORC-compliant resources totaling approximately 1.4 million tonnes of tungsten trioxide (WO3). Once operational, the two mines are expected to produce around 12,000 metric tonnes of tungsten annually, equivalent to nearly 15% of current global tungsten mine production.

Product Impact and Chemical Commodity Price Impact

The project is expected to strengthen the long-term global supply of ammonium paratungstate (APT) and other tungsten products by developing a significant new production source outside China. While commercial production remains several years away, the announcement improves long-term supply security for manufacturers in aerospace, defense, electronics, mining, and cutting tools. For chemical commodities tracked by ChemAnalyst, there is unlikely to be any immediate price impact because the project is still in the feasibility stage. However, once production begins, increased tungsten concentrate and APT availability could ease supply tightness, improve market stability, and place moderate downward pressure on global tungsten prices over the long term.