InfoHub Logo

The United States and Kazakhstan are poised to generate billions of dollars in revenue through a collaborative project to develop the "S North Fold" wolfram deposit in the Karaganda region. This strategic partnership is expected to significantly bolster the supply of critical minerals for American industry while fostering economic growth in Kazakhstan.

Joint Venture for Critical Minerals

The ambitious project involves a joint venture between the US-based Cove Capital and Kazakhstan's "Tau-Ken Samruk" company. The agreement, solidified during the C5+1 summit in Washington, will see the creation of a new enterprise to exploit the vast, untapped wolfram reserves at the "S North Fold" and "Upper Kairakty" sites. Cove Capital will hold a 70% stake in the venture, with "Tau-Ken Samruk" holding the remaining 30%.

Significant Investment and Projected Revenue

The total investment for this groundbreaking project is estimated at $1.1 billion. Notably, the US Export-Import Bank has expressed readiness to finance $900 million of this amount. Production is slated to commence in 2030, with initial extraction of 300,000 tons of wolfram-bearing ore. Projections indicate a steady increase in ore extraction, reaching 3 million tons annually between 2033 and 2047. Over the period from 2030 to 2048, the total revenue from the sale of wolfram trioxide, molybdenum, copper, and bismuth is anticipated to exceed 1 trillion tenge, approximately $2 billion USD.

Focus on Local Processing

Kazakhstan's Ministry of Industry is emphasizing the importance of local processing for the extracted minerals. The goal is to move beyond exporting raw materials and instead develop value-added products within Kazakhstan. Specifically, the project plans for the initial processing of wolfram concentrate to produce ammonium paratungstate, a key component in manufacturing specialized wolfram products like wear-resistant parts and powders. This approach aims to increase export value, create local jobs, and establish processing facilities within the republic.

Strategic Importance for the US

Wolfram is classified as a critical mineral for the United States, which has not produced it domestically since 2015, relying heavily on global supply chains dominated by China. This Kazakhstani project is therefore crucial for strengthening the supply of this vital metal for American industrial and national security needs. While mine construction is expected to begin within two years, industrial production and concentrate processing are anticipated to launch approximately 3.5 years after that.

The "S North Fold" company, which is preparing to develop the "Upper Kairakty" and "S North Fold" wolfram deposits, reported losses of 91.9 million tenge in 2024 and 83.7 million tenge in 2023. These mining assets have also been included in the list of privatization objects for the coming years by the Agency for Protection of Competition and Development.

Бұл туралы Infohub.kz ақпарат агенттігі хабарлайды.