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The US Export-Import Bank (EXIM Bank) and the US International Development Finance Corporation (DFC) have yet to approve $1.6 billion for a tungsten project in Kazakhstan. Bloomberg reports that the lenders are concerned about the prospects for Cove Kaz Capital’s project and geopolitical risks. The company plans to submit a formal financing application in 2027 (kursiv.media).
What happened
The proposed financing has two parts: $900 million from EXIM Bank and $700 million from DFC. Both institutions issued letters of interest in 2025. But these documents only signal preliminary interest and do not commit them to providing funds.
According to Bloomberg, the lenders’ concerns include Kazakhstan’s proximity to China and Russia. A DFC spokesperson told the news agency that the corporation is not currently considering the deal. The project is at the first of four stages of assessment.
EXIM Bank’s letter expired in August, and the company has requested an extension. The bank declined to comment. Cove Kaz Capital says US officials continue to support the project.
What this means
There’s an important detail here: financing has not been definitively rejected. Board chairman Pini Althaus says the application will be submitted after the definitive feasibility study is completed in 2027. The study should establish whether developing the deposit makes economic sense. Until then, Althaus says, the company does not need to borrow money.
For Washington, the project is part of an effort to reduce reliance on Chinese tungsten. The strategic metal is used in products including missiles and artillery shells. Donald Trump’s administration supports the project.
Mining is expected to begin in 2030
The project’s main asset in Kazakhstan is the Severny Katpar deposit in the Karaganda region. In May 2026, Cove Kaz Capital completed the purchase of a 70% stake in the company developing it for $114.8 million. The remaining 30% belongs to Samruk-Kazyna through Tau-Ken Samruk.
The company is also preparing to list on a US stock exchange under the name Kaz Resources. It estimates that, once at full capacity, the operation could account for up to 15% of global tungsten production. This is the company’s own forecast.
The deposit is still being studied. Mining is scheduled to begin in 2030, with long-term supplies to the US starting in 2031.
