Cove Kaz Capital Group LLC, a US-based company focused on the development of critical mineral resources in Kazakhstan, has engaged global engineering firms DRA Global, ERM and Knight Piésold to undertake a definitive feasibility study (DFS) on the Northern Katpar tungsten project in Kazakhstan held by Severniy Katpar LLP, in which Cove Kaz holds a 70% controlling interest.

The ultimate purpose of the DFS is to support a final investment decision and facilitate the standard detailed due diligence requirements of prospective financing partners, including the U.S. International Development Finance Corporation (DFC), the Export-Import Bank of the United States (EXIM), other U.S. institutional finance entities and commercial partners. The DFS will build into front end engineering and design, which will then flow into detailed engineering and design, project construction, commissioning and commercial operations.

Building on the company’s technical leadership in the successful development and operation of large-scale tungsten assets, an extensive evaluation of the capabilities of leading engineering firms was performed. With that assessment, the company determined a consortium of contractors is best qualified to meet the mining and refinery project’s objectives:

• DRA Global, an international multi-disciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals and metals industry, has been appointed the lead contractor and will also be responsible for mineral processing;
• ERM, one of the world’s largest sustainability consultancies, providing environmental, social and risk advisory services for critical minerals projects, will lead on geology, mine planning and technical programs, as well as environmental and social frameworks. ERM has extensive experience in major capital project environmental, social, regulatory and financial licence to operate and brings significant global and Kazakh mining experience to the project, Cove Kaz says; and
• Knight Piésold, an international consulting firm providing specialised engineering and environmental services to the mining and energy sectors, with deep technical capability in tailings management, rock mechanics and water management systems, supporting long-term operational safety and environmental resilience for complex large-scale tungsten mining operations, will lead on geotechnical, hydrology and tailings storage.

These companies have been selected as preferred contractors subject to execution of definitive agreements and will work alongside Cove Kaz Capital Group’s in-house team led by Chief Executive Officer, Dominic Heaton, who, himself, led the development of the Nui Phao integrated tungsten mine and refinery in Vietnam, the largest tungsten operation outside of China.

The DFS will develop the overall mine plan for Northern Katpar and inform the construction and operations of its accompanying refinery to be located in Kazakhstan, designed to produce the benchmark tungsten product known as ammonium paratungstate.

“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 United States,” Pini Althaus, Executive Chairman, Cove Kaz Capital Group, said. “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.”

Heaton added: “We anticipate the DFS to be completed before the end of 2027 and it will be supported by extensive historical work by JSC Tau-Ken Samruk, the national mining company of Kazakhstan and our 30% partner in Severniy Katpar LLP. It is exciting to see the start of physical activity at the site after detailed planning since completing the acquisition of our controlling interest in Severniy Katpar in April. This was a months-long competitive evaluation process, and I would like to acknowledge the broad participation of best-in-class engineering firms seeking to support this project.”

As the focus of activity at Northern Katpar transfers to the DFS, the company is starting to ramp-up its development work on the second tungsten deposit held by Severniy Katpar LLP, known as Upper Kairakty, located approximately 25 km from Northern Katpar.

Severniy Katpar LLP owns one of the largest known undeveloped tungsten resources globally. Feasibility studies completed in April 2023 reported total JORC-compliant mineral resources containing 1.4 Mt of tungsten trioxide (WO3) and support anticipated production of approximately 5,000 t/y at Northern Katpar, and 7,000 t/y from Upper Kairakty, for a total of 12,000 t/y, representing approximately 15% of current global tungsten mine production.