Kazakhstan, U.S. create JV for rare earth metals exploration in Kostanay region
ALMATY. July 24 (Interfax) - Kazakhstan and the United States have created a joint venture to implement a geological exploration project at the Akbulak deposit in the Kostanay region, Samruk-Kazyna said in a press release.
The agreement was signed on Wednesday by Acting General Director of KazGeology JSC Dauren Abuov and CEO of the U.S. investment company Cove Kaz Capital Group LLC Pini Althaus.
"The Kazakh-American joint venture will carry out a geological exploration project at the Akbulak deposit in the Kostanay region (35 km southwest of the city of Arkalyk. According to historical geological data, the deposit contains reserves of rare earth elements," the press release says.
The license for geological exploration at the Akbulak deposit belongs to KazGeology.
According to the press release, the American party will finance the project until the reserves are recorded in the books, and later the project will be financed by the parties proportionally to their interests in the JV.
It was reported earlier that KazGeology JSC will own a 25% stake in the JV and Cove Kaz Capital Group will have a 75% holding.
Cove Kaz Capital Group LLC is part of the international investment group Cove Capital LLC, which has been investing since 2015 in mining projects from exploration to construction stages. Cove Capital has offices in the United States and Australia. In Kazakhstan, the Group also owns KAZ Critical Minerals LLP (through KAZ Resources LLC (USA).
National Geological Exploration Company KazGeology JSC was established in June 2011. The company operates more than 30 investment projects for the exploration of copper, gold, polymetals, iron and chromium with foreign and local partners, including Rio Tinto, Yildirim Holding A.S., Solidcore Resources plc, Kazzinc LLP and Kazakhmys LLP. The company also implements a joint project with ALS Limited, which is a geochemical laboratory for core analysis - ALS KazGeoChemistry LLP.
In 2023, all voting shares of Kazgeology JSC were transferred to the national mining company Tau-Ken Samruk.
