Tungsten Mines Battle: Can the US Bets on Kazakhstan Shake China's Dominance?

Kazakhstan's tungsten mines have become the latest target for the US to reduce its dependence on key minerals from China. According to foreign media reports, the US government is actively encouraging domestic companies to participate in the development of Kazakhstan's two largest and most promising tungsten deposits to reduce its dependence on the Chinese supply chain.

These two tungsten deposits are Upper Kairaktinskoye and North Katpar, both located in the Karaganda region, about 20 kilometers apart. According to the Tau-Ken Samruk website, Kazakhstan has currently explored a total of 12 tungsten deposits with estimated total reserves exceeding 2 million tons of WO3, of which Upper Kairaktinskoye and North Katpar have reserves of approximately 1.3 million tons of tungsten. The two deposits have a combined designed production capacity of over 12,500 tons of ammonium paratungstate (PVA), which, upon development, will make Kazakhstan the world's second-largest tungsten producer. Currently, geological exploration, technical testing, and supporting infrastructure construction are actively underway in the region.

Tau-Ken Samruk, Kazakhstan's national mining company, is affiliated with Kazakhstan's sovereign wealth fund, Samruk-Kazyna, and is dedicated to promoting the development of Kazakhstan's tungsten mining industry.

It is reported that the US-based Cove Kaz Capital (CKC) has been in talks with Samruk-Kazyna to establish a joint venture and become the major shareholder in the project, responsible for the construction and operation of the mining and processing plant, as well as the shipment of tungsten resources to the United States for defense and commercial purposes. The US government may provide financial support for the project through federal agencies such as the US International Development Finance Corporation and the Export-Import Bank of China.

Earlier this year, CKC established a joint venture, Akbulak REE, with Kazgeology JSC (a wholly-owned subsidiary of Tau-Ken Samruk), Kazakhstan's national exploration company, to explore and develop rare earth projects.

Tungsten has become a focal point of competition due to its irreplaceable role in both military and economic fields. Renowned for its high melting point and hardness, tungsten is used in the manufacture of armor-piercing projectiles, missile components, and other defense equipment, as well as in cutting tools, high-temperature aerospace components, electronic components, and shielding for the medical and nuclear industries. The stability of its supply chain is crucial to national security and technological progress, leading countries like the US and Europe to classify tungsten as a critical mineral.

China, with 52% of global reserves and 83% of global production, continues to dominate the global tungsten supply landscape. This year, driven by supply shortages and the complex international political and economic environment, domestic and international tungsten prices have repeatedly reached new highs, essentially doubling. For example, the price of ammonium paratungstate has risen by over 220,000 yuan to 435,000 yuan per ton this year, as of October 30, 2025.

This strategic layout surrounding Kazakhstan's tungsten resources, along with the previously initiated rare earth cooperation, transcends the scope of ordinary commercial investment, becoming a vivid illustration of the current competition among major powers for critical mineral resources and the restructuring of global supply chains.

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