Cove Capital and Kazakhstan’s national geological exploration company and subsidiary of JSC Tau-Ken Samruk National Mining Company, JSC Qazgeology, has announced the formation of a joint venture (JV) named Akbulak REE.
The venture has been registered as a Private Company under the Astana International Financial Centre (AIFC).
The move will help in advancing the exploration and advancement of the Akbulak Rare Earth Project located in Kazakhstan’s Kostanay Region.
The project is notable for its substantial historical resource, estimated at 380,000 tonnes of rare earth oxides. These include critical elements such as neodymium and praseodymium, which are essential in the manufacture of permanent magnets (NdFeB), and yttrium, used in various sectors including electronics, medicine, and materials science.
Under the JV agreement, Cove Kaz Capital Group, a part of Cove Capital, will be responsible for the initial financing of the project. The funding responsibilities will then be proportionally distributed.
Ownership stakes have been allocated with Cove Kaz Capital Group holding 75% and Qazgeology retaining 25%.
Additionally, the exploration licence for the Akbulak project was transferred from Qazgeology to Akbulak REE. This transfer, sanctioned by the Ministry of Industry and Construction of the Republic of Kazakhstan, empowers the JV to immediately begin exploration and development activities.
Cove Capital CEO Pini Althaus said: “The formation of Akbulak REE and the licence transfer mark a significant advancement in our strategy to develop critical mineral resources in Kazakhstan.
“This joint venture is a testament to our commitment to partnering with leading local institutions like Qazgeology, to unlock the full potential of Kazakhstan’s rare earth and critical minerals deposits, whilst building a fully integrated mine-to-magnet supply chain which will benefit Kazakhstan and contributing to global supply chains.”
Previously in 2023, Cove Capital’s Portfolio Company, Kaz Resources, through its subsidiary Kaz Critical Minerals, became the first American entity to secure critical minerals and rare earths land concessions in Kazakhstan.
Kaz Critical Minerals currently holds 12 critical minerals concessions and a licence for tailings concessions in the country.
Building on its strategic initiatives, Cove Capital entered into an MoU with Samruk Kazyna, Kazakhstan’s Sovereign Wealth Fund, in September 2023, focusing on rare earth metals collaboration. In April 2024, Cove Capital further announced a landmark partnership with Tau-Ken Samruk to enhance the exploration and development of rare earth and critical metals within Kazakhstan.
