The Meha Tungsten Mine Agreement rewrites the resource pattern of Central Asia
Key mineral business cooperation
On November 6, 2025, Kazakh President Tokayev, during his visit to Washington, with US Cove Capital LLC formally signed a key mineral cooperation memorandum, and then the two sides finalized a tungsten ore development agreement worth $1.1 billion. According to the agreement, the United States won North Katpar and Upper Kerachtin (Upper) Kairaktin, with a 70% controlling stake in the two extra-large tungsten mines, with a proven reserve of 1.3 million tons, and an annual output of 80,000 tons of tungsten concentrate, accounting for 12% of the global annual output. (Information source: Bloomberg reported on November 9, 2025)
Background: The Chinese enterprise bidding process and the US side's tied strategy
China Jiangxi Copper Group (Jiangxi Copper Group) submitted a bidding plan in September 2024, pledging an investment of US$980 million and building a matching smelter, but was out with a small disadvantage in the final review in March 2025. The key to the final victory of American companies lies in their "resource + infrastructure" bundling model - in addition to mineral development, the US side has simultaneously signed a US$4.2 billion cross-Criss-Mischievous railway upgrade contract, including 300 kilometers of electrification transformation and 5 smart station construction. (Source of information: Observer.com, October 22, 2025, exclusive news)
Geo-balancing: multi-vector diplomacy practice in Kazakhstan
Although China's bilateral trade volume reached 43.85 billion US dollars in 2024 (data from the General Administration of Customs of China), China has maintained the status of Kazakhstan's largest trading partner for 12 consecutive years, but Kazakhstan still adheres to the strategy of "diversity balance". At the China-Kazakhstan Economic and Trade Fair in March 2025, the two sides signed 8 agreements, covering the expansion of oil pipelines and the construction of photovoltaic power plants, with a total amount of 2.7 billion US dollars. The Presidential Office of Kazakhstan emphasized in the agreement statement: "This project will make Kazakhstan a major player in the global tungsten market and create 1,200 high-value-added jobs."
Impact: Global supply chain reconstruction and Sino-US strategic game
The International Development Finance Corporation (DFC) provides a $680 million political risk guarantee for the project, and its Commerce Department document clearly states that the move is aimed at "reducing dependence on China through diversification of the supply chain". At present, the dependence of the import of tungsten raw materials in the United States is as high as 83%, of which 62% is from China. Chinese enterprises have accelerated the replacement layout. In the second quarter of 2025, the Chagan Suburga Tungsten Mine project, which was launched in Kent Province, Mongolia, has a designed annual production capacity of 50,000 tons and is expected to be put into production in 2027.
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