U.S. Financing Uncertainty Emerges for Kazakhstan Tungsten Project

Two U.S. government lenders are not currently pursuing up to $1.6 billion in financing for a major tungsten project in Kazakhstan, raising questions about construction funding for a venture intended to supply critical minerals to American industry and defense. The U.S. Export-Import Bank (EXIM) and U.S. International Development Finance Corporation (DFC) have no current plans to finance the project, according to a November 10 Reuters report. Developer Cove Kaz Capital Group maintains that work is proceeding on schedule and that it has not yet formally applied for construction financing. The proposed financing comprised up to $900 million from EXIM and $700 million from DFC. Both agencies issued preliminary letters of interest, but neither approved a loan. A DFC official told Reuters that the project had not advanced beyond the first stage of the agency’s four-stage review process. Reuters also reported that EXIM has no current plans to provide financing. The development creates uncertainty over a potential source of construction funding, although no previously approved loans have been withdrawn. Cove Says Development Remains on Schedule Cove has disputed suggestions that the lenders’ positions represent a definitive rejection of its financing plans. In a statement reported by Forbes Kazakhstan, the company said the project remains in the engineering and feasibility stage. Its definitive feasibility study is expected to be completed in 2027, after which it intends to seek construction financing. Cove said financing for its current development activities is secured and that it continues to consider commercial lenders, strategic investors, and potential customers as sources of capital. The company also maintained that its discussions with U.S. officials indicated continued support for the project. In its statement to Reuters, Cove said the project had received support under both the Biden and Trump administrations. Kazakhstan’s Position in Critical Minerals The project covers the Northern Katpar and Upper Kairakty tungsten deposits in Kazakhstan’s Karaganda Region. Cove Kaz acquired a 70% interest in Severniy Katpar LLP in April 2026, while Kazakhstan’s national mining company, Tau-Ken Samruk, retains 30%. The deposits represent a substantial undeveloped tungsten resource. Cove plans to develop mining operations and processing facilities producing ammonium paratungstate, an intermediate material used in manufacturing tungsten products. Tungsten is important to aerospace manufacturing, industrial machinery, and defense equipment. China dominates global production, making alternative supplies a priority for Washington. Kazakhstan is already a significant supplier of critical minerals to American industry. Kazakh-origin uranium accounted for 28% of deliveries to U.S. civilian nuclear power plant operators in 2025, according to the U.S. Energy Information Administration. Kazakhstan also supplies titanium to major aerospace manufacturers, including Boeing and Airbus, as highlighted by Kanat Sharlapayev, chairman of the presidium of Kazakhstan’s Atameken National Chamber of Entrepreneurs, at the B20 USA Summit in Washington on November 10. Financing and Political Implications Cove announced on November 2 that it had abandoned its planned merger with Skyline Builders and would instead pursue a direct U.S. stock-market listing during the first half of 2027. The company also announced a $32 million equity investment commitment from...