Kazakh-American Alliance Embarks on Rare Earth Element Exploration
Kazgeology and Cove Kaz Capital Group Join Forces for Geological Exploration in Kostanai Region
ASTANA – Kazgeology and Cove Kaz Capital Group have sealed a deal to establish a joint venture for geological exploration in the Kostanai Region. The agreement, signed on July 24, aims to leverage the expertise and resources of both entities to unlock the mineral potential in the area.
The project will center on the Akbulak site, situated 35 kilometers southwest of the city of Arkalyk. Historical geological data indicates the presence of rare earth elements in the site, making it a promising location for exploration and development.
Under the terms of the agreement, Cove Kaz Capital Group will initially finance the project, with subsequent funding to be allocated based on the shares in the joint venture. Kazgeology will hold a 25% stake in the partnership, while Cove Kaz Capital Group will have a 75% ownership.
Cove Kaz Capital Group, a part of Cove Capital, is an international investment group with a strong track record in mining projects. The group has been actively involved in various stages of mining operations, from exploration to construction, since 2015. With offices in the United States and Australia, Cove Capital also owns KAZ Critical Minerals in Kazakhstan.
On the other hand, Kazgeology is currently engaged in multiple investment projects focused on exploring for copper, gold, polymetals, iron, and chromium. The company collaborates with both foreign and domestic partners, including industry giants like Rio Tinto and Yildirim Holding A.S. Kazgeology’s collaboration with ALS Limited on the joint geochemical laboratory project, ALS Kazgeochemistry, further enhances its capabilities in the field.
In a significant development, 100% of Kazgeology’s voting shares were transferred to the Tau-Ken Samruk national mining company in 2023. This move reflects the company’s commitment to enhancing its operations and maximizing the potential of its projects.
The partnership between Kazgeology and Cove Kaz Capital Group signifies a strategic alliance aimed at driving innovation and unlocking the mineral wealth of the Kostanai Region. With their combined expertise and resources, the joint venture is poised to make significant strides in geological exploration and development in the region.
