U.S. government lenders aren’t planning to approve $1.6 billion (C$2.26 billion) in financing for a Kazakh tungsten venture linked to President Donald Trump’s sons, amid concerns about its commercial prospects and geopolitical risks, Bloomberg reported Monday.
The U.S. Export-Import Bank and International Development Finance Corp. issued letters of interest last year for the Cove Kaz Capital Group project. Officials are concerned about its viability and Kazakhstan’s position between China and Russia, Bloomberg said, citing people familiar with the matter.
Cove Kaz executive chairman Pini Althaus told the news agency that the company had received no indication of withdrawn support and didn’t expect to apply formally for loans until a feasibility study is completed next year. A Development Finance Corp. official said the agency wasn’t currently pursuing a transaction with the company.
Planned refinery
The uncertainty tests Washington’s efforts to develop tungsten supply outside China. The financing envisaged up to $900 million from the export bank and $700 million from the development lender, but the letters were expressions of interest rather than approved loans.
Cove Kaz owns 70% of the venture developing Northern Katpar and Upper Kairakty, about 25 km apart in Kazakhstan, with national mining company Tau-Ken Samruk holding the rest. The company expects to finish the Northern Katpar feasibility study before the end of 2027 and plans a refinery in Kazakhstan to produce ammonium paratungstate, an intermediate tungsten product.
Eric Trump and Donald Trump Jr.’s investment connection runs through Skyline Builders Group (Nasdaq: KAZR). Cove Kaz and Skyline abandoned their merger on Nov. 2. Cove Kaz instead plans a direct U.S. listing in the first half of 2027 and announced a conditional $32-million equity commitment from American Ventures, implying a $1.97-billion valuation.
Source: www.northernminer.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
