Highlights

  • Cove Kaz Capital Group, which is developing a tungsten project in Kazakhstan, is reportedly planning a direct listing in the United States.
  • The plan replaces a proposed Merger with Skyline Builders that drew criticism over potential conflicts of interest involving Trump family members.
  • China's tightening tungsten export controls and US moves to exclude Chinese Supply from defence chains are lifting interest in alternative sources.

Tungsten has moved from a niche industrial metal to a strategic priority as governments seek to reduce reliance on Chinese supply, a theme that resonates with Australian readers following critical minerals within the wider field of Metal and Mining Stocks on the ASX. The latest development comes from the United States, where Cove Kaz Capital Group, a unit of New York-based Cove Capital, is reportedly planning a direct public listing. The company is developing a large tungsten project in Kazakhstan and has attracted attention because of reported links to Donald Trump Jr. And Eric Trump. According to reporting by The Wall Street Journal, the listing would replace an earlier proposed merger with a US construction company. The story highlights how geopolitics, defence procurement and Capital Markets are converging around tungsten supply.Metal and Mining Stocks

Cove Kaz Shifts From Merger to Direct Listing

Citing The Wall Street Journal, Cove Kaz plans to be renamed Kaz Resources, convert to a Delaware corporation and pursue a direct listing in the US as soon as next year. The company is expected to adopt the ticker currently used by Skyline Builders, the US construction firm with which it had earlier agreed to merge.

That merger, announced earlier this year, was criticised over possible conflicts of interest. The Financial Times had reported that the Trump brothers used a shell company to acquire stakes in Skyline before the merger was announced. Under the new structure, Skyline shareholders, including the Trump brothers, would hold a minority interest in Kaz Resources.

Trump Family Links and Funding Interest

Following the listing, the Trump brothers are expected to hold a small indirect stake. Cove Kaz founder Pini Althaus has described them as passive participants in the venture. Dominari Holdings, a Nasdaq-listed company with Trump family links, has agreed to provide funding through its American Ventures vehicle.

Cove Kaz has also received letters of interest from the US Export-Import Bank and the US International Development Finance Corporation. These letters are not finalised commitments, and any funding would depend on further Due Diligence and approvals.

The Kazakhstan Tungsten Project

The project in Kazakhstan is partly owned by the country's state mining company, and Cove Kaz was awarded it last year. The company has said the deposit could eventually contribute a meaningful share of global tungsten supply, a company estimate that has not been independently verified. A feasibility study is underway, with production targeted later this decade.

Cove Kaz says it is in discussions with potential US offtakers. Agreements between Kazakhstan and the United States facilitated by the Trump administration included the project, although US government support for it reportedly dates back to the previous administration.

China's Grip on Tungsten and the US Response

China dominates global tungsten production. The metal is used in defence equipment, semiconductors and industrial cutting tools because of its hardness and very high melting point. Beijing's tighter export controls have heightened supply concerns and pushed prices to record levels this year, according to the company's cited data.

The US Department of War is reportedly preparing to ban Chinese tungsten from its supply chains and has committed funding to a domestic producer. These policy moves are increasing Demand for non-Chinese supply and encouraging capital to flow towards projects in allied or neutral jurisdictions.

Relevance for Australian Critical Minerals

Australia hosts tungsten deposits and a cohort of ASX-listed explorers and developers pursuing the metal, alongside broader government efforts to build critical minerals partnerships with the United States. Developments such as US defence procurement restrictions on Chinese material can influence demand expectations for projects in Australia and other allied countries.

Cove Kaz is not listed on the ASX, and its project is in Central Asia. However, its listing plan illustrates the strong US interest in diversifying tungsten supply, a trend that Australian companies in the sector are also seeking to engage with.

Risks and Uncertainties

The listing has not yet taken place, and its timing and structure could change. The project is at the feasibility stage, so production targets, costs and the scale of supply remain uncertain. Political scrutiny of the Trump family links, reliance on government financing that is not yet confirmed, and the jurisdictional complexity of operating in Kazakhstan add further risks.

Tungsten Supply Becomes a Strategic Contest

Cove Kaz's reported plan to list in the United States highlights how tungsten has become a focal point in efforts to reduce reliance on China, with defence policy, government financing interest and political connections all playing a role. For Australian readers, the development provides context on the strategic demand shaping the critical minerals segment of the ASX, while the project itself remains at an early stage with significant uncertainties.