Tau-Ken Samruk Sells 70% of Severniy Katpar in Kazakhstan
kazakhstan moved a step closer to a larger rare-metals push after Tau-Ken Samruk concluded a deal to sell a 70% stake in the Severniy Katpar deposit in the Karaganda region to Cove Kaz Capital Group. Cove Capital committed to invest at least $1.1 billion in the project, tying the transaction to a broader strategy to develop the critical minerals sector.
The deposit sits inside a country described as holding large reserves of rare metals, including tungsten and molybdenum, while Kazakhstan’s own needs for those materials are limited. That leaves export-driven development and foreign capital at the center of the deal.
Karaganda deposit sale
Tau-Ken Samruk began the agreement in February 2026 and moved forward with the sale of the Severniy Katpar stake to the American investment company Cove Kaz Capital Group. The project is in Kazakhstan’s Karaganda region, and the 70% transfer gives Cove Capital a controlling position in the deposit.
The investment commitment is at least $1.1 billion. For a deposit that the source describes as practically undeveloped, that level of capital points to a long buildout rather than a quick extraction play. Sharip Ishmukhamedov, a candidate of political sciences, economist and political analyst, said the resources are vast but require enormous investment.
United States and China rivalry
Ishmukhamedov said the competition between the United States and China for Kazakhstan’s rare earth resources has long taken on a systemic character. He said China first recognized the strategic importance of rare earth resources, then secured a significant advantage by building a strong position in major deposits in developing countries.
He also said Kazakhstan now ranks second in the world in rare earth metal reserves, behind China, and that the country is entering a stage of real rivalry among investors and major mining companies from China, the United States, the United Kingdom and South Korea for access to its deposits. In his words, “As for Kazakhstan, it is only now that it is possible to speak about a full-scale competition for its resources — it is precisely at this stage that real rivalry is beginning between investors and major mining companies from China, the United States, the United Kingdom and South Korea for access to Kazakhstan’s deposits.”
Critical minerals strategy
The deal fits into a wider effort to develop Kazakhstan’s critical minerals sector. The source frames the transaction against rising global demand for tungsten and molybdenum and higher prices for both, which has made the country’s underdeveloped reserves more attractive to foreign investors.
Ishmukhamedov said, “The fact is that the United States and Western countries have effectively acknowledged that, in this area, they are largely losing out, as they missed the moment when control over the world’s largest deposits of rare earth metals needed to be established.” He added that “China managed to secure a significant advantage — it has established a strong position in the largest deposits in developing countries and simultaneously remains the world’s number one in terms of its own rare earth reserves.”
The next step is the project’s execution under the $1.1 billion commitment, with the Severniy Katpar stake now in Cove Capital’s hands and Kazakhstan’s rare-minerals sector drawing more direct competition from major foreign investors.
