In a significant move poised to reshape the global tungsten supply landscape, Cove Kaz Capital Group has formally engaged a consortium of international engineering companies to undertake a definitive feasibility study (DFS) for its Northern Katpar tungsten project in Kazakhstan. This development, announced on August 4, 2026, marks a pivotal stage in bringing a major new source of this critical mineral to market, with a strong focus on supplying the United States amid growing concerns over resource security and supply chain resilience.

The Northern Katpar project is managed by Severniy Katpar, a Kazakh entity in which Cove Kaz Capital Group holds a 70% controlling stake, underscoring its strategic importance to the group's long-term vision. The DFS, a comprehensive and rigorous evaluation of the project's technical and economic viability, commenced in July 2026 and is projected to conclude by the end of 2027. Its successful completion is crucial for securing a final investment decision and for facilitating due diligence processes with potential financing partners, including influential US government-backed financial entities.

Advancing Kazakhstan’s Tungsten Ambition with Strategic Partnerships

The decision to proceed with a DFS represents a major de-risking milestone for the Northern Katpar project. A definitive feasibility study provides an exhaustive blueprint for the entire mining operation, from resource definition and mine planning to processing, infrastructure, and environmental management. Its outcomes will serve as the foundation for subsequent project phases, including front-end engineering and design (FEED), detailed engineering, construction, commissioning, and ultimately, the commencement of commercial operations.

Cove Kaz Capital Group’s executive chairman, Pini Althaus, emphasized the strategic importance of this progression, stating, “Following the start of site preparation in July, formally engaging the DFS engineering firms is an essential step towards our objective of becoming a leading, commercially successful supplier of tungsten to the US.” This statement highlights the explicit intent to integrate the Northern Katpar output into the American supply chain, a critical consideration given the prevailing geopolitical landscape and the drive for secure access to essential minerals.

The financing strategy for the project prominently features US financial entities. The DFS is expected to support due diligence for potential financing from institutions such as the US International Development Finance Corporation (DFC) and the Export-Import Bank of the US (EXIM), alongside other US financial entities and commercial partners. The involvement of these US government-backed financial organizations signals a clear strategic interest from Washington in diversifying and strengthening its supply lines for critical minerals like tungsten, which are vital for industrial, technological, and defense applications.

A Collaborative Ensemble of Engineering Expertise

To ensure the robustness and international credibility of the DFS, Cove Kaz Capital Group has assembled a consortium of highly respected international engineering and consulting firms, each bringing specialized expertise to different facets of the project. These appointments, while subject to the finalization of definitive agreements, outline a clear division of responsibilities designed to optimize the study’s accuracy and comprehensiveness.

  • DRA Global has been appointed as the lead contractor. A renowned mining engineering and project delivery specialist, DRA Global will oversee the crucial mineral processing work. Their extensive experience in designing and implementing complex processing plants for a variety of commodities positions them to develop an efficient and effective metallurgical flowsheet for the Northern Katpar tungsten ore.
  • ERM will take charge of geology, mine planning, technical programs, and the development of robust environmental and social frameworks. ERM’s track record in navigating intricate regulatory and financial licensing processes for large-scale industrial projects is particularly valuable, ensuring that the project adheres to international best practices and meets stringent environmental, social, and governance (ESG) standards, which are increasingly vital for attracting investment and securing operational permits.
  • Knight Piésold has been assigned responsibility for geotechnical, hydrology, and tailings storage engineering. Their focus on operational safety and environmental management in these critical areas is paramount. Proper design and management of tailings facilities, water balance, and ground stability are fundamental to the long-term integrity and environmental performance of any large-scale mining operation, mitigating risks and ensuring sustainable practices.

This multi-disciplinary approach, leveraging the strengths of each firm, is intended to produce a DFS that is not only technically sound but also addresses all regulatory, environmental, and financial considerations necessary for a successful project launch.

Substantial Resource Potential and Ambitious Production Targets

The Northern Katpar project, along with its adjacent Upper Kairakty deposit, holds significant promise for global tungsten supply. A feasibility study completed in April 2023 reported Joint Ore Reserve Committee (JORC)-compliant mineral resources at Severniy Katpar totaling 1.4 million tonnes (mt) of tungsten trioxide (WO3). JORC compliance is an internationally recognized standard for reporting mineral resources and ore reserves, providing a high degree of confidence for investors and stakeholders regarding the reliability of the resource estimate.

The projected production figures from these deposits underscore their potential to become a globally significant source of tungsten. Expected annual production is estimated at approximately 5,000 tonnes per annum (tpa) from Northern Katpar and 7,000 tpa from the Upper Kairakty deposit. The Upper Kairakty deposit, situated approximately 25 kilometers from Northern Katpar, is also a focal point for Cove Kaz Capital Group, with development activities being intensified in parallel with the Northern Katpar DFS. Combined, these two projects are projected to account for roughly 12,000 tpa of tungsten trioxide, which would represent a substantial 15% of current global tungsten mine production.

Beyond raw concentrate, the DFS will also include plans for a local refinery designed to produce ammonium paratungstate (APT). APT is a high-purity, commonly traded intermediate tungsten product that serves as a precursor for various tungsten chemicals and metal powders. Localizing APT production not only adds significant value but also enhances the strategic importance of the project by providing a more refined product directly to market, potentially streamlining supply chains for end-users.

Addressing a Systemic Global Shortage

The timing of this project is particularly pertinent given the current dynamics of the global tungsten market. As Pini Althaus highlighted, “There is a systemic shortage of tungsten that cannot be addressed by existing mines globally, even in China. The current supply deficit is acute, but the medium to long-term market is also showing a significant shortage.”

Tungsten is classified as a critical mineral by many nations, including the United States, due to its unique properties and essential applications. Its exceptionally high melting point, density, and hardness make it indispensable in industries ranging from aerospace and defense to electronics, automotive, and mining tools. Tungsten is a key component in superalloys, wear-resistant materials, cutting tools, and is critical for many high-temperature and high-stress applications.

The global supply chain for tungsten has historically been concentrated in a few geographic regions, leading to vulnerabilities. The prospect of a new, substantial, and geopolitically stable source like Northern Katpar in Kazakhstan, with explicit backing and intent for US supply, could play a crucial role in diversifying supply and mitigating these risks. The projected 15% contribution to global mine production underscores the project's potential to significantly alleviate market tightness and contribute to price stability.

The Road Ahead: Impact and Outlook

The comprehensive DFS, scheduled for completion by the end of 2027, will be the cornerstone for the subsequent phases of project development. Following a positive final investment decision, the project will move swiftly into detailed engineering and construction, with the ultimate goal of commencing commercial operations. The groundwork for this has already begun, with Cove Kaz Capital Group having initiated site preparation at Severniy Katpar in July 2026 to support final drilling programs required for the DFS.

The development of the Northern Katpar and Upper Kairakty projects has the potential to transform Kazakhstan into a more prominent player in the global critical minerals sector. For the United States, it represents a tangible step towards securing a diversified and robust supply of tungsten, reducing reliance on potentially unstable or concentrated sources. As the global push for secure and sustainable supply chains intensifies, projects like Northern Katpar, backed by international collaboration and strategic financial support, will be instrumental in meeting the evolving demands of advanced industries worldwide.