Trump Administration Moves to Counter China with Push for U.S. Tungsten Deal in Kazakhstan

The Trump Administration is intensifying efforts to secure U.S. access to Kazakhstan’s vast tungsten reserves, seeking to outmaneuver China, which currently dominates global supply of the critical metal. Tungsten is vital for manufacturing military ammunition, precision weaponry, medical equipment, and lightbulbs, making it a key component in both defense and high-tech industries.

According to an October 21 Bloomberg report, officials from the U.S. Department of Commerce are advancing discussions between Cove Kaz Capital Group LLC, a private U.S. company, and Samruk-Kazyna, Kazakhstan’s sovereign wealth fund. The goal is to grant Cove Kaz development rights to two major tungsten deposits — Upper Kairakty and North Katpar.

While Washington is not seeking a direct ownership stake, the U.S. government is reportedly prepared to facilitate financing, including loans, to help advance the project.

Cove Kaz faces strong competition from China, whose near-monopoly on the global tungsten supply chain extends across mining, processing, and exports. As noted in a Quest Metals analysis earlier this year, China’s dominance gives it significant leverage over global strategic industries.

Kazakhstan, however, holds an untapped advantage. Local estimates put the country’s tungsten reserves at over 2 million tons, valued in the billions of dollars — enough to make Kazakhstan a potential major global supplier. Development of these deposits was halted in the early 1990s following the collapse of the Soviet Union, but efforts to revive the tungsten sector resumed in 2021. A new processing facility capable of handling 3.3 million tons of ore annually was commissioned in the Almaty Region last year.

Cove Kaz Capital Group LLC is affiliated with Cove Capital LLC, which operates in both the United States and Australia. In 2024, Cove Kaz formed a joint venture with Kazgeology JSC, a Kazakh state-owned entity, to explore minerals and rare earth elements in the Kostenay Region, near the Russian border.

If successful, the deal could mark a significant geopolitical and economic win for Washington, strengthening U.S. supply chain security while reducing global dependence on Chinese-controlled tungsten production.